Singapore hotel rates fall in Q3 due to lack of F1; Q2 tourism receipts grow 11.5%

[SINGAPORE] Hotels’ average room rate (ARR) and revenue per available room (RevPAR) slipped in the third quarter of 2025, though occupancy was marginally higher and overall room revenue held steady.

This came as the annual Formula 1 night race took place in October – the earlier part of Q4 – rather than the usual end-September.

Tourist arrivals grew year on year in Q3 – but fell for September.

In Q3, hotels posted an ARR of S$275.39, down 3.2 per cent year on year from S$284.57, Singapore Tourism Board (STB) data showed on Thursday (Nov 6).

The quarter’s highest ARR was in August, at S$275.86. July and August recorded slight on-year gains, but September saw ARR drop 11.8 per cent, to S$275.67.

RevPAR slid 2.4 per cent year on year to S$241.22, from S$247.03. This was weighed down by September, with a 13.7 per cent fall to S$224.21, in contrast to slight rises in July and August.

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The average occupancy rate was 87.59 per cent in Q3, up from 86.81 per cent. September was again the main drag, with its rate down 1.7 percentage points from a year ago.

Available room nights grew 2.5 per cent to 6.1 million in Q3, rising in all three months.

Overall room revenue, which reflects room supply, was unchanged at S$1.47 billion in the quarter. Room revenue grew year on year in July and August, but September’s takings were 12.3 per cent lower at S$444.7 million.

SEE ALSO

Singapore hotel room rates dip in Q2 as demand softens, supply grows

Singapore tourism receipts edge down 0.1% in Q1

September’s weak hotel performance is in line with that month’s 1.3 per cent decline in international visitor arrivals (IVA) to 1.3 million. Visitor arrivals rose in July and August, with each recording over 1.6 million visitors.

More visitors overall

For Q3 as a whole, IVA rose 3 per cent year on year to 4.5 million.

China remained the top IVA source market with one million tourists in Q3, though this marked a 1.3 per cent fall.

Other top source countries were Indonesia (556,230), Australia (313,750), Malaysia (297,693) and India (275,970), all of which saw rises.

For September, India recorded the highest IVA growth, on the back of business travel for events, an STB spokesperson said, citing examples such as Indian company Sun Pharma’s Star Club Award ceremony and flagship convention of the Confederation of Real Estate Developers’ Associations of India.

“The Eid-e-Milad public holiday on Sep 5 also created opportunities for long weekend short-haul leisure travel,” they added.

For 2025 as a whole, STB expects 17 million to 18.5 million international visitors, contributing S$29 billion to S$30.5 billion in tourism spending.

The Republic welcomed 12.9 million visitors from January to September, up 2.3 per cent from 12.6 million in the year-ago period.

Spending on the rise

For the first half of the year, tourism receipts (TR) were S$15.71 billion, based on the latest STB data. This was up 5.3 per cent from S$14.92 billion in the year-ago period.

In Q2, TR climbed 11.5 per cent year on year to S$7.63 billion, though this was 5.6 per cent less than Q1’s S$8.08 billion.

Q2’s improved year-on-year performance was driven by most major categories.

The biggest rise was for sightseeing, entertainment and gaming (SEG), which garnered S$1.87 billion, up 34.5 per cent year on year.

Accommodation drew S$1.17 billion, up 3.6 per cent; food and beverage (F&B) brought in S$1.12 billion, up 18.3 per cent; and other components’ TR rose 5.8 per cent to S$2.28 billion.

Shopping was the only category where tourist spending fell, down 2.5 per cent to S$1.19 billion.

By geography, China continued to drive receipts in Q2, despite a year-on-year decline. Visitors from China spent S$949.8 million in Singapore, down 1.5 per cent.

This was followed by tourists from Indonesia, who spent S$692.1 million; Australia, with S$498.3 million; India, with S$481.1 million; and the US, with S$366.3 million. TR from these markets all rose year on year.

Strong half year

While Q2 spending was lower than Q1, it still contributed to a higher H1 2025, compared with H1 2024.

The “robust” performance was supported by a pick-up in IVA, said the STB spokesperson. IVA rose in H1 to 8.3 million, up 1.9 per cent from 8.2 million in the year-ago period.

China was the top-spending market with S$2.25 billion. This was followed by Indonesia at S$1.41 billion, Australia at S$1.04 billion, the US at S$844.5 million and India at S$812.2 million.

By major components, all categories except for shopping (-2.5 per cent) saw year on year growth in H1.

F&B grew the most, by 16 per cent. Eight of Singapore’s top 10 TR-generating markets saw year-on-year growth in F&B spend, the STB spokesperson noted.

“This growth comes amid STB’s ongoing marketing campaign to position Singapore as a culinary capital, highlighting the global appeal of Singapore’s diverse culinary landscape,” STB said.

The spokesperson highlighted notable recent developments in F&B, including Violet Oon Singapore opening its biggest restaurant at Dempsey Hill in April and three-Michelin-starred Odette at National Gallery earning a spot on the annual World’s 50 Best Restaurants in June.

TR for accommodation, SEG and other components each rose by about 5 per cent.

The strong H1 performance comes on the back of a “vibrant calendar of events in Q2”, the STB spokesperson said. These include HSBC SVNS Singapore 2025; the inaugural NBA Rising Stars Invitational; and concerts by home-grown singer Stefanie Sun as well as global stars J-Hope from BTS and Lady Gaga.

There were also major MICE (meetings, incentives, conferences and exhibitions) events such as Semicon Southeast Asia 2025 and the International Association for Hydro-Environment Engineering and Research World Congress 2025.