Room Rates and Occupancy See Month-on-Month Drops Following F1 Surge
Singapore hotels experienced a decline in performance in October 2024, following the peak of the Formula 1 (F1) night race in September, according to Singapore Tourism Board (STB) data released on Nov 29, 2024. While international visitor arrivals increased by 3.5 per cent, reaching 1.31 million, hotel room rates, revenue per available room (RevPAR), and overall room revenue all saw month-on-month declines.
The average room rate (ARR) dropped by 12.9 per cent, from S$315.79 in September to S$275.19 in October. However, it showed a slight increase of 1.7 per cent year on year. Similarly, RevPAR fell by 14.4 per cent to S$225.07, but marked a 6.7 per cent increase compared to the same period the previous year.
Overall, room revenue in October fell by 13.3 per cent to S$442.7 million, compared to S$510.8 million in September, but was up 8.8 per cent year on year. Occupancy rates also dipped slightly to 81.8 per cent from 83.3 per cent in September, though still higher by 3.8 percentage points compared to the previous year.
Historically, October has seen similar drops in hotel performance, including in October 2023 and pre-Covid October 2019. Despite the decline in hotel metrics, the rise in tourist arrivals reflects continued demand for Singapore as a destination.
