These five new hotels will open in Singapore this year
The hotels will add 1,031 rooms to the market.
Only one hotel, The Maxwell Reserve Hotel, Autograph Collection, entered the Singapore hotel market in Q2 according to a JLL report. The 138-room hotel was rebranded from the former Six Senses Maxwell.
The total number of hotel rooms as at YTD June 2022 stood at 62,037.
Here’s more from JLL:
Five more hotels with 1,031 rooms are expected to enter the market in 2H22. These include the Pullman Singapore Orchard (326 rooms) and Vibe Singapore Orchard (256 rooms), which are rebranding projects. The other three hotels are Citadines Connect City Centre (172 rooms), Artyzen Cuscaden (142 rooms) and Citadines Connect Rochester Commons (135 rooms).
Strong growth in ADR leads the growth of RevPAR
As at YTD June 2022, the revenue per available room (RevPAR) of luxury hotels recorded SGD 193, a y-o-y growth of 123.7%. Occupancy marginally fell to 46.3% y-o-y, from 48.6% during the same time last year. In contrast, average daily rate (ADR) recorded a 134.6% growth y-o-y, compensating for the fall in occupancy. As a result, YTD ADR stood at SGD 416, 3.3% higher than the 2019 level.
Most luxury hotels have exited the government quarantine programme in 1H22. The return of international travellers, particularly corporate travellers, has led the growth in ADR. At the same time, labour shortage constraints are driving hotels to set occupancy caps and push for ADR growth.
Outlook: Market to continue recovering despite economic challenges
With relaxed COVID-19 measures and border restrictions, the number of tourists visiting Singapore is expected to grow. A relatively balanced geographical and market segmentation mix have established a strong foundation for the industry to rebound. However, a full recovery is anticipated to take another two to three years.
Although the industry is facing broader economic challenges such as a labour crunch and inflation-driven supply issues, the Singapore hotel market has adapted quickly and shown resilience, putting in place measures such as adjusting cleaning frequencies. Despite challenges, the strong tourism outlook and limited supply growth should continue to drive the recovery of the Singapore hotel market.
Note: Singapore Hotels refers to Singapore's luxury hotel market.