Singapore hotels’ average room rate slips in January, but other indicators rise

SINGAPORE hotels’ average room rate (ARR) fell slightly month on month in January, but all other measures rose sequentially, Singapore Tourism Board data showed on Friday (Mar 1).

ARR in January slipped 1.4 per cent to S$278.75 from S$282.60 from December 2023, even as it was 2.3 per cent above the year-ago period’s ARR of S$272.52.

The latest figures came as China tourists boosted Singapore’s January visitor arrivals to a new post-Covid high of 1,436,404 tourists. Overall hotel room revenue, at S$423.2 million, marked a 4.6 per cent increase from S$404.4 million in the preceding month. This was up 32.9 per cent on-year.

Also higher than the previous month was revenue per available room (RevPAR), rising 3.9 per cent to S$217.76 from S$209.53. Year on year, RevPAR was up 13 per cent.

At 78.1 per cent, January’s average occupancy rate grew from December’s 74.1 per cent, though it remained lower than the pre-pandemic rate of 83 per cent in January 2020.

Across hotel categories, performances were mixed month on month. ARR was down to S$631.75 in the luxury segment, S$321.27 in the upscale, and S$206.15 in the mid-tier. However, it was up to S$141.78 in the economy category.