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PR Newswire
04-05-2011, 08:17 AM
May 4, 2011
Hotel room rates expected to keep rising
Industry consultancy firm sees growth of 10 to 15% this year
By Jonathan Kwok
HOTEL room rates are expected to remain buoyant, thanks to the boost from the integrated resorts and the opening of the new International Cruise Terminal.
Although more hotels are being built, CB Richard Ellis (CBRE) Hotels expects average room rates to rise by 10 to 15 per cent this year, from last year's levels.
Last year, average room rates islandwide rose by 11.3 per cent.
Data from the Singapore Tourism Board (STB) shows that average room rates for mid-tier hotels made the greatest gain, with a 22.4 per cent rise in rates to $168.50.
CBRE also expects islandwide occupancy levels to come in at between 83 per cent and 86 per cent for the full year this year - an improvement on the 81.8 per cent and 83 per cent occupancy levels recorded in the first two months of the year.
'The projected range average occupancy rate for 2011 is still indicative of a very busy year for the hospitality market,' CBRE said yesterday.
Last year, islandwide occupancy levels hit 85.6 per cent.
The healthy tourist arrivals will benefit room occupancy levels and prices, said CBRE, which expects STB's target of 12 million to 12.5 million visitors this year to be 'comfortably met'.
Factors supporting a strong increase from last year's 11.6 million visitors include the two integrated resorts, upgrades in the Orchard Road retail area, and the upcoming International Cruise Terminal, as well as the 'excellent infrastructure and facilities' in Singapore, said CBRE.
It added that economies worldwide are recovering, and that short-term events such as the political disruption in Thailand and northern Japan's earthquake will encourage visitors to go to alternative destinations.
CBRE Hotels Asia Pacific executive director Robert McIntosh said: 'All indicators point to the (hospitality) sector having made a very strong recovery post-financial crisis. The prospects for growth in the sector are very positive.
'We are confident that the 1,499 rooms that are expected in the pipeline this year will be matched by a good level of increased demand.'
Islandwide revenue per available room (RevPar) is expected to increase by between 7.5 per cent and 10 per cent this year, after growing 24.7 per cent last year to $181.64, said CBRE.
Last year, RevPar increased the most for economy hotels, rising by 41.75 per cent year-on-year to $86.10.
RevPar for upmarket hotels, under which boutique hotels are categorised, rose 28.34 per cent last year, to $205.90.
CBRE said that boutique hotels are 'likely to continue growing in the near future'.
'Hotel investors have shown keen interest in sites with conservation buildings with intentions to transform the conservation buildings into boutique hotels.'
CBRE cited the example of the Robinson Road/Boon Tat Street site that attracted eight bids when put up for tender last year.
The Stamford Road/North Bridge Road site attracted 14 bids, added CBRE.
jonkwok@sph.com.sg
Hotel room rates expected to keep rising
Industry consultancy firm sees growth of 10 to 15% this year
By Jonathan Kwok
HOTEL room rates are expected to remain buoyant, thanks to the boost from the integrated resorts and the opening of the new International Cruise Terminal.
Although more hotels are being built, CB Richard Ellis (CBRE) Hotels expects average room rates to rise by 10 to 15 per cent this year, from last year's levels.
Last year, average room rates islandwide rose by 11.3 per cent.
Data from the Singapore Tourism Board (STB) shows that average room rates for mid-tier hotels made the greatest gain, with a 22.4 per cent rise in rates to $168.50.
CBRE also expects islandwide occupancy levels to come in at between 83 per cent and 86 per cent for the full year this year - an improvement on the 81.8 per cent and 83 per cent occupancy levels recorded in the first two months of the year.
'The projected range average occupancy rate for 2011 is still indicative of a very busy year for the hospitality market,' CBRE said yesterday.
Last year, islandwide occupancy levels hit 85.6 per cent.
The healthy tourist arrivals will benefit room occupancy levels and prices, said CBRE, which expects STB's target of 12 million to 12.5 million visitors this year to be 'comfortably met'.
Factors supporting a strong increase from last year's 11.6 million visitors include the two integrated resorts, upgrades in the Orchard Road retail area, and the upcoming International Cruise Terminal, as well as the 'excellent infrastructure and facilities' in Singapore, said CBRE.
It added that economies worldwide are recovering, and that short-term events such as the political disruption in Thailand and northern Japan's earthquake will encourage visitors to go to alternative destinations.
CBRE Hotels Asia Pacific executive director Robert McIntosh said: 'All indicators point to the (hospitality) sector having made a very strong recovery post-financial crisis. The prospects for growth in the sector are very positive.
'We are confident that the 1,499 rooms that are expected in the pipeline this year will be matched by a good level of increased demand.'
Islandwide revenue per available room (RevPar) is expected to increase by between 7.5 per cent and 10 per cent this year, after growing 24.7 per cent last year to $181.64, said CBRE.
Last year, RevPar increased the most for economy hotels, rising by 41.75 per cent year-on-year to $86.10.
RevPar for upmarket hotels, under which boutique hotels are categorised, rose 28.34 per cent last year, to $205.90.
CBRE said that boutique hotels are 'likely to continue growing in the near future'.
'Hotel investors have shown keen interest in sites with conservation buildings with intentions to transform the conservation buildings into boutique hotels.'
CBRE cited the example of the Robinson Road/Boon Tat Street site that attracted eight bids when put up for tender last year.
The Stamford Road/North Bridge Road site attracted 14 bids, added CBRE.
jonkwok@sph.com.sg
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