Two luxury hotels enter the Singapore market in Q2

Over 1,600 more rooms are expected to open in the remainder of the year.

According to a JLL report, Singapore counted 61,755 hotel rooms at the end of 2022. A total of 1,471 hotel rooms have entered the market as of YTD June 2023, 44% of which were opened in 2Q23. The two new hotels are the 302-room Mondrian Singapore and the 350-room Pan Pacific Orchard.

Here’s more from JLL:

For the remainder of 2023, 1,661 more rooms are anticipated to open. As a result, the y-o-y supply growth from 2022 to 2023 stands at 5.1%. This is mainly due to delayed openings, such as Pullman Singapore Hill Street and The Singapore EDITION.

Luxury hotels continue to register strong RevPAR, driven by the ADR

As of YTD June 2023, Singapore luxury hotels have registered an occupancy of 73.6% and an average daily rate (ADR) of SGD 484. Occupancy and ADR grew by 54.2 percentage points (ppts) and 20.6%, respectively. The resultant revenue per available room (RevPAR) of SGD 356 recorded a y-o-y growth of 85.9%. Luxury hotels continue to ramp up occupancy while holding rates.

Compared to the same period in 2019, occupancy is marginally behind by less than 1 ppt. However, ADR is ahead by 23%, resulting in a RevPAR exceeding 2019 levels by 21%. These demonstrate the resilience of the luxury market in Singapore as demand remains strong in the city-state.

Outlook: Tourism and hotels are expected to continue growth trajectory

Singapore will hold several major events such as the F1 Grand Prix in the second half of the year. These events, along with the tourism recovery in the region, are expected to further support tourism growth.

Hotels are likely to continue their growth trajectory in the immediate term. In the medium to long term, the growth rate is expected to be moderated as new supply enters the market, of which 39% will be in the luxury segment.