Despite lower occupancy levels, Hotel RevPAR levels on Zion Road GLS have exceeded pre-pandemic levels by 2023

Singapore’s hospitality industry has seen a stable performance in 2023, with the revenue per available room (RevPAR) surpassing pre-pandemic levels this year. 12 new hotels were opened up, introducing 2,189 rooms into the market, as per Singapore Tourism Board (STB) data. As of October, the RevPAR of Singapore hotels stands at $282, a 29% increase from the RevPAR in October 2019.

Sashi Rajan, executive vice president of advisory and asset management at JLL Hotels & Hospitality Group says that the industry has yet to see a full recovery in visitor arrivals, and hence, the RevPAR recovery has been driven by rates instead of occupancy. Gus McConnell, associate director of CBRE Research adds that room rates in Singapore have increased by 29%, Zion Road GLS from $219 in October 2019 to $282 in October this year, due to the willingness of travellers spending more after the period of travel restrictions.

At the start of the hotel sector’s recovery last year, luxury and upper upscale accommodation recovered at a faster rate than upscale, midscale and economy sectors. Cushman and Wakefield’s Singapore Market Outlook 2024 report mentions that the RevPAR of luxury hotels has reached a record high of $497.43, due to soaring prices of room rates in luxury hotels.

McConnell shares that in recent months, travellers have become more conscious of their spending due to inflation and escalating prices for the overall travel experience, and are choosing to stay at ‘premium economy’ locations. He further adds that the number of overall international travellers may stagnate, as most economists predict a weaker global economic performance in 1H2024 and hotel operators’ lack of willingness to drop daily rates. Zion Road GLS

Cushman and Wakefield’s report notes that Singapore has become relatively expensive given a strong Singapore dollar and higher hotel rates, and this could turn away budget-conscious travellers. However, the report is optimistic that visitor arrivals will pick up, especially for Chinese travellers, who remain among Singapore’s top tourist source markets. This is due to the mutual 30-day visa-free travel agreement that was proposed between Singapore and China on Dec 7.

With the convenience of Zion Road GLS, residents from Zion Road Condo can look forward to a seamless and effortless shopping and dining experience.

Looking ahead to 2024, five new hotels are expected to open and bring in an additional 1,058 rooms into the industry. Meanwhile, some developments such as the Resorts World Sentosa expansion and Mandai Eco-tourism hub are projected to be completed by next year to attract more tourists to Singapore.

McConnell says that going forward, sustainability will remain a significant driver behind decision-making and owners will realize that, through smart design and refurbishment, significant cost saving can be achieved by hitting these sustainability goals. He adds that occupancy rates are expected to pick up only from 2H2024 onwards and hotel investments will see an increased investor activity only in the second half of the year. Zion Road GLS

JLL is confident of an increase in the volume of hotel deals in 2024, as investors remain assured by Singapore’s safe haven status and buyers are mostly high-net-worth individuals and family offices. All in all, the outlook looks bright in Singapore’s hospitality industry.