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Singapore hotels’ average room rate, revenues in August slip from July highs

SINGAPORE hotels’ average room rate (ARR) dipped in August from July’s near-decade high to come in at S$248.34, though it was still significantly higher than year-ago levels, according to the latest data from the Singapore Tourism Board (STB).

The month’s figure broke the ARR’s six-month growth streak, which peaked at a revised S$257.94 in July. On the month, the rate fell by 3.7 per cent. On the year, however, it jumped 62.7 per cent.

Overall, hotel room revenues reached S$315.6 million for the month, falling slightly against the S$316.8 million observed in the preceding month, but this was more than 4.5 times the level recorded in the corresponding period a year ago.

The falls came even as August saw the 7th straight month of growth in international visitor arrivals, with 728,744 tourist arrivals recorded against July’s 726,602.

Revenue per available room (RevPAR) also slipped 5.4 per cent from July’s post-Covid high to hit S$193.33 in August, but was still up 127.3 per cent from the year-ago period.

At 77.8 per cent, August’s average occupancy rates were also marginally lower than July’s multi-year high of 79.2 per cent. The latest reading was about 5 percentage points shy of the pre-pandemic rate of the approximate 83 per cent clocked in December 2019 and January 2020.

Declines were seen across all hotel categories in August, with ARRs of S$123.55 in the economy segment, S$203.83 in the mid-tier segment, S$290.79 in the upscale segment and S$513.56 in the luxury segment.

Year to date, overall room revenue was S$1.71 billion, higher than the amount earned for the whole of 2020 (S$1.23 billion) and the whole of 2021 (S$965.3 million).

For the first 8 months of the year, ARR reached S$224.86, up 49.7 per cent compared to the first 8 months of 2021. RevPAR was up 108 per cent for the period to S$159.60, STB data showed. Average occupancy rate was up 19.9 per cent from the same period last year to 71 per cent.

Source: https://www.businesstimes.com.sg/government-economy/singapore-hotels-average-room-rate-revenues-in-august-slip-from-july-highs