Singapore hotel room supply to grow at a CAGR of 1.5% until 2027

Find out some of the upcoming notable hotel openings.

JLL noted that in 2023 and 2024, the growth in hotel supply was driven by the Midscale and Upscale segments, with a notable shift toward lifestyle brands and rebranded hotels, especially in Singapore’s Central region, indicating a move from traditional corporate hotels.

“For the next three years (2025–2027), hotel room supply is expected to grow at a CAGR of 1.5%. Key openings include the 62-key Raffles Sentosa Resort & Spa, the 350-key W Hotel Marina View and the 338-key Mandai Rainforest Resort,” the analyst said.

Here’s more from JLL:

As of YTD November 2024, Singapore recorded 15.2 million international visitor arrivals, a y-o-y increase of 22.9%, representing substantial progress in the tourism sector’s recovery.

This growth is supported by improved flight connectivity and the 30-day visa exemption between Singapore and Mainland China. However, Chinese arrivals, in particular, have lagged in recovery, representing only 40% of pre-pandemic levels.

Softening of hotel trading performance due to demand challenges

In 2024, Singapore hotels’ RevPAR had slightly moderated from its peak in 2023. Across the different segments, hotels face pressure from occupancy constraints and increased competition from new supply.

Significantly, 2024 hotel transactions are primarily for co-living conversions, as well as leasehold properties that have more favourable yield profiles.

Outlook: Tourism growth will continued to be driven by new government initiatives and innovative attractions

Singapore will continue to solidify its reputation as Southeast Asia’s entertainment hub by hosting high-profile international concerts and performances.

From the corporate and MICE perspective, Singapore’s continuous investments in infrastructure, commitment to sustainability and reputation for innovation make it an attractive destination for global business events.