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Revenue per available room, a metric used by the hotel industry, slumped 7.4 percent in June to S$179.40 ($132) a night, the lowest since 2010, according to data from the Singapore Tourism Board. Even as tourist arrivals have risen each month this year, room rates have fallen because of shorter trips by visitors and a 5 percent increase in the number of hotel rooms.
There’s no relief in sight. Of the 2,866 hotel rooms slated for addition this year, about two-thirds were expected to open in the second half, according to UOB Kay Hian Pte. Marriott International Inc. and the owner of the Holiday Inn Express chain are among operators that have planned new hotels in Singapore this year or already opened them.
“The high supply of new hotel rooms will be a headwind for room rates,” Macquarie Group Ltd. analysts Ken Ang and Tuck Yin Soong said in a note to clients. “While visitor arrivals have increased, average length of stay is falling, including from a higher proportion of day visitors,” said the analysts, who have a negative rating on hotel stocks.
Tourist Influx Brings No Joy to Singapore Hotels Amid Room Glut - Bloomberg
There’s no relief in sight. Of the 2,866 hotel rooms slated for addition this year, about two-thirds were expected to open in the second half, according to UOB Kay Hian Pte. Marriott International Inc. and the owner of the Holiday Inn Express chain are among operators that have planned new hotels in Singapore this year or already opened them.
“The high supply of new hotel rooms will be a headwind for room rates,” Macquarie Group Ltd. analysts Ken Ang and Tuck Yin Soong said in a note to clients. “While visitor arrivals have increased, average length of stay is falling, including from a higher proportion of day visitors,” said the analysts, who have a negative rating on hotel stocks.
Tourist Influx Brings No Joy to Singapore Hotels Amid Room Glut - Bloomberg
