Easing of supply pressures a boon for hoteliers in 2018
After several years of declines in revenue per available room, RevPAR has just edged up 4.4% y-o-y
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Nisha Ramchandani
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HOTEL room supply entering the hospitality market is expected to ease this year, which will help bolster the industry and give certain hotel players a boost.
After the boom in supply injection in recent years, new room supply is expected to slow down to a compound annual growth rate (CAGR) of 1.3 per cent from 2017-2020, according to data from CDL Hospitality Trusts (CDLHT), which incorporated data from Horwath and the Singapore Tourism Board (STB). In comparison, 2014-2017 saw a CAGR of 5.5 per cent.
This year, the supply pipeline is only expected to clock 2.5 per cent growth, before easing further to 0.8 per cent and 0.6 per cent in 2019 and 2020 respectively. This, in tandem with rising visitor arrivals, appears to be helping revenue per available room (RevPAR).
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