Tourism growth drives higher occupancy and revenue per available room
Singapore’s hotel industry experienced mixed performance in January, with average room rates (ARR) dipping slightly month-on-month while key revenue indicators showed growth, according to data from the Singapore Tourism Board.
Decline in room rates, increase in revenue
The average room rate (ARR) in January fell 1.4% to S$278.75, down from S$282.60 in December 2023. However, compared to the same period last year, ARR increased by 2.3% from S$272.52.
Despite the drop in ARR, total hotel room revenue climbed 4.6% from S$404.4 million in December to S$423.2 million in January. This marks an annual increase of 32.9%, reflecting the continued recovery of Singapore’s tourism sector.
Higher visitor arrivals and occupancy rates
The boost in revenue was largely driven by an increase in visitor arrivals, particularly from China, which helped set a post-Covid record of 1,436,404 tourists in January.
The revenue per available room (RevPAR) also rose 3.9% month-on-month to S$217.76, up from S$209.53 in December. Year-on-year, RevPAR grew by 13%.
Meanwhile, the average hotel occupancy rate increased to 78.1%, compared to 74.1% in December. However, it remains below the 83% pre-pandemic level recorded in January 2020.
Performance by hotel segment
Room rate trends varied across different hotel categories in January:
Luxury hotels: ARR decreased to S$631.75
Upscale hotels: ARR declined to S$321.27
Mid-tier hotels: ARR dropped to S$206.15
Economy hotels: ARR increased to S$141.78
While the economy segment saw a rise in ARR, the luxury, upscale, and mid-tier categories experienced slight declines.
With rising visitor numbers and increasing revenue, Singapore’s hotel industry continues to show strong signs of recovery, despite fluctuating room rates across different segments.
