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Hotels in Singapore Report Growth in H1 2012
Hotels in Singapore definitely have a good year. Constant occupancy during first six months of this year and steady demand are the main reasons for the growth of ADR of 6.6% for the first half of the year.
Singapore remains one of the most popular business and leisure destinations in Asia. Hotels in Singapore benefit from good revenue per available room performance. Even though the hotel supply will grow and is expected to add a bit more than 6% by the end of 2013, the general forecast for the market is positive as there’s a strong demand. The growth may affect hotel rates, but the trend for Singapore accommodations is still upward.
This year Singapore was attracting international attention during the biennial Singapore Airshow that is known as one of the largest events of its king in Asia. The 2012 show attracted the record number of visitors and over 30% of them were from abroad. The event has also made its impact in the positive stats for the first six months of 2012. The average occupancy during this period estimated 84%.
Hotels located in the Marina Bay area feature the biggest growth of RevPAR – 13.2% to the level of S$277.46 (US$220.58). The growth of revenues was possible thanks to the increase of the average daily rate of 8%. The growth of occupancy was a bit less – 4.8%. The peak of occupancy was in February – 89.3% and was caused by the Airshow. The average daily rate for January-June 2012 was S$321.02 (US$255.21), while during the show it reached the level of $333.55 (US$333.55).
Other popular areas of Singapore, such as The River Valley and the Orchard Road, also feature growth of RevPAR, though it’s just 1.8% for the Orchard Road. The occupancy for this area was even a bit down – minus 1.7% comparing to 2011. The River Valley features the highest growth of the average daily rate (up 5.6%), but weak occupancy caused low growth of RevPAR of just 1.4%.
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