Singapore hotel takings, average room rates slip in August

SINGAPORE hotels’ average room rate (ARR) dipped in August from July’s year-to-date peak to come in at S$283.98, but remained higher than the rate recorded in the year-ago period, latest data from the Singapore Tourism Board (STB) showed.

ARR was up 13.6 per cent year on year, but 2.4 per cent lower than July’s revised S$290.97. 

Overall hotel room revenues also fell in August, slipping 6.4 per cent to S$450.5 million, from S$481.5 million previously. Nevertheless, it still surpassed the S$311.2 million recorded in August 2022. 

August’s lower figures came as tourist arrivals dipped in August to 1.31 million due to a seasonal fall in tourism demand. The fall in overall performance is thus expected and not reflective of an overall trend, said Tan Ling-wei, senior vice-president at JLL Hotels & Hospitality Group.

Hotel occupancy levels in the Asia-Pacific region have been rising steadily as key markets reopen, air capacity ramps up, and conferences and events pick up strongly around the region, she added.

Revenue per available room (RevPAR) for the month was S$243.60, lower than the previous month’s year-to-date record of S$261.14. On the year, RevPAR was up 26.5 per cent. 

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August’s average occupancy rate of 85.8 per cent was lower than the preceding month’s 89.8 per cent, but slightly higher than the 77 per cent recorded in August 2022. 

Most hotel categories saw ARR dip in August, with the luxury segment being an exception. ARR for the luxury segment grew to S$611.11, from S$598.62 previously.

Meanwhile, ARR was down to S$338.27 in the upscale segment, S$216.13 in the mid-tier segment, and S$150.70 in economy. 

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Tan said luxury hotels have recorded strong ARR growth post-pandemic, as a result of strong inbound tourism as well as inflationary pressures which have been passed on to hotel guests.

Limited flight capacity has also driven up the overall cost of travel, and this has discouraged price-sensitive travellers from going abroad. “This has an overall impact on the performance of mid-scale and economy hotels, which largely rely on tour groups and value-conscious leisure travellers,” said Tan.

Tan expects occupancy rates to dip further in September due to reduced capacity as a result of the Formula 1 Grand Prix. But overall ARR is expected to see strong growth, which will result in a slight rise in RevPAR.

Based on STB data, room revenue reached S$3.1 billion year-to-date in August, up 85 per cent from the corresponding year-ago period. ARR for the first nine months gained 23.2 per cent to S$276.62; RevPAR rose 41 per cent to S$223.49; and the average occupancy rate grew 10.2 per cent to 80.8 per cent.