STR’s preliminary December 2016 data for Singapore indicates strong supply growth and low occupancy levels.
Based on daily data from December, Singapore reported the following in year-over-year comparisons:
- Supply: +4.1%
- Demand: +2.1%
- Occupancy: -2.0% to 77.2%
- Average daily rate (ADR): -2.7% to SGD281.70
- Revenue per available room (RevPAR): -4.7% to SGD217.44
This would be Singapore’s second-lowest actual occupancy level of the year behind June 2016 (76.5%), and the lowest absolute occupancy for a December since 2009 (77.1%). STR analysts note that the country’s hotels continue to struggle with fewer major events driving tourism and a consistent imbalance in supply and demand growth. Additionally, an increase in the number of rooms in the Upper Midscale class has altered the market landscape with more rooms available at higher prices. December marked Singapore’s 10th consecutive month of year-over-year ADR declines.
STR will release actual December 2016 results later this month. The November edition of STR’s Market Forecast is now available.