Singapore to record fewest new hotel completions since 2023

Hotel development is expected to slow significantly this year.

According to a JLL report, the 338-key Mandai Rainforest Resort by Banyan Tree debuted in April 2025, marking the only new hotel opening in Singapore during Q2 2025. This follows the opening of Raffles Sentosa in Q1 2025.

“Hotel development in Singapore expected to slow significantly in 2025, with the fewest new room additions since tourism rebounded in 2023. More active government support witnessed with two hotel sites offered through its Government Land Sales programme in H2 2025,” the report added.

Here’s more from JLL:

As of YTD June 2025, luxury hotels saw a y-o-y RevPAR decrease as both ADR and occupancy softened. Declines were also seen in the midscale and upscale segments, albeit the decline was moderated by occupancy improvements. Declines appeared more pronounced due to higher baseline performance in 2024.

Robust transaction activity seen in Q2 2025, including the sales of the 299-key Citadines Raffles Place, 49-key Duxton Reserve Singapore and 48-key 21 Carpenter Street. Notably, the 21 Carpenter Street transaction set records as Singapore’s largest shophouse transaction and one of the biggest for a city-state hospitality property.

Outlook: Stable growth from key source markets while the investment sector shows interest in heritage hospitality assets

Both tourism arrivals and receipts are projected to remain stable y-o-y based on the latest figures from the Singapore Tourism Board. Key markets, such as China and Australia, are expected to continue to drive tourism spending, particularly in accommodation and F&B.

Growing preference for unique hospitality assets with historical significance as investors seek capital appreciation and stable returns, with more transactions anticipated following the recent high-profile deals.