Seasonal Dip Affects Hotel Performance, But Growth Remains Strong
Singapore’s hotel industry saw a decline in both average room rates (ARR) and overall revenues in August, following a seasonal dip in tourism demand. Data from the Singapore Tourism Board (STB) revealed that ARR fell to S$283.98, down 2.4% from July’s peak of S$290.97, though it remained 13.6% higher year-on-year.
Total hotel room revenues dropped by 6.4% to S$450.5 million, down from S$481.5 million in July, but still well above the S$311.2 million recorded in August 2022. The revenue per available room (RevPAR) also fell to S$243.60 from July’s high of S$261.14, although it was up 26.5% compared to the previous year.
August’s lower figures were in line with a seasonal decline in tourist arrivals, which fell to 1.31 million. However, the luxury hotel segment continued to show strength, with ARR increasing to S$611.11. Meanwhile, ARR dropped in other categories: upscale (S$338.27), mid-tier (S$216.13), and economy (S$150.70).
Experts expect occupancy rates to decline further in September due to reduced hotel capacity during the Formula 1 Grand Prix, but overall ARR is predicted to rise, leading to a slight increase in RevPAR.
