S'pore daily hotel rates in among top three highest in Asia-Pac: CBRE

by Cheryl Tay

Singapore was ranked among the top three cities whose hotels have the highest Average Daily Rates (ADR), along with Hong Kong and Seoul, according to CBRE's Asia Hotels MarketView report for H1 2012.

The report revealed that Asia Pacific hotels witnessed higher average occupancy and ADR in H1 2012 compared to the same period last year.

Occupancy rates rose to 65.9 percent from 64.6 percent, while ADR grew marginally by 1.1 percent to US$143.7 (S$178.92).

For the half-year period, Revenue per Available Room (RevPAR) also increased 3.0 percent to US$94.60 (S$117.79) from last year.

"Visitor arrivals continue to be very strong into Singapore. The Eurozone crisis, while casting some shadows on the short-medium term outlook, has not impacted demand for hotel rooms in Singapore significantly in the last six months," said Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific.

McIntosh also noted that the city's hospitality sector has performed better, amid expectations of a weakened sector due to the Eurozone crisis.

"It points to Singapore's success in restructuring the sector, improving tourist attractions and business events as well as medical and gaming facilities."

Meanwhile, the report expects Singapore to witness a 17 percent increase in its stock of total hotel rooms from 2011 to 2014. Demand will also likely remain strong as visitor arrivals grow 20 percent over the same period.

Moreover, CBRE also expects increased buying activity from hospitality Reits, as well as those waiting to be listed.

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