Singapore hotels’ average room rate slips to five-month low in January; still higher on the year

HOTELS’ average room rate (ARR) in the Republic eased in January to the lowest since August 2022, but remained far above January 2022’s levels, Singapore Tourism Board data showed on Tuesday (Feb 28). All other measures also fell on the month, but rose on the year.

ARR in January 2023 was up 53 per cent from the same period a year earlier to S$273.94, even as it dipped 4.3 per cent from December’s 14-year high of S$286.21.

ARR was S$248.91 in August 2022, before picking up to remain above S$280 from September to the end of the year.

January 2023’s ARR was also 18.6 per cent higher than the same month in 2020, before border restrictions were implemented due to the pandemic.

The latest figures came as tourist arrivals grew to a new high of 931,530 since the onset of the pandemic. Overall hotel room revenue, at S$318.4 million, recorded a sequential fall of 14.4 per cent from S$371.8 million in the preceding month. This was markedly lower than the S$369.3 million in January 2020, but up more than two times on the year.

Also lower than the previous month was revenue per available room (RevPAR), declining 15.1 per cent to S$191.78 from S$225.89. Year on year, however, RevPAR was up 82 per cent.

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At 70 per cent, January’s average occupancy rate was down from December’s 78.9 per cent, and under the pre-pandemic rate of 83 per cent in January 2020. But it was 11.2 per cent higher year on year.

Across hotel categories, performances worsened, with lower ARRs for all hotel types compared to end-2022. It was down to S$586.03 in the luxury segment, S$324.94 in the upscale segment, S$204.92 in the mid-tier segment and S$130.43 in the economy segment.

Still, these prices were higher than in January last year and pre-pandemic January 2020.