Singapore hotels charge highest average room rate in 10 years as visitors return

Singapore hotels charge highest average room rate in 10 years as visitors return

SINGAPORE – Singapore hotels’ average room rate (ARR) rose to a near-decade high in July, extending growth for the sixth straight month, as global visitors returned with the reopening of international borders.

ARR in July was $259 – the highest since September 2012 when it was $261.66, according to the latest data from the Singapore Tourism Board (STB).

Year on year, ARR shot up 69.2 per cent from July last year, while it grew 7.7 per cent month on month.

Overall, hotel revenues reached $318.5 million for the month, more than 4½ times the level recorded in the corresponding period a year ago.

The increase in industrywide room revenue – which also rose month on month against $297 million in June – came as visitor arrivals surged to 726,601 in July, from 543,733 in the previous month.

Revenue per available room (RevPAR) rose to record a new post-Covid-19 high, hitting $204.99 in July, up 140.3 per cent from the previous year, and up 9.2 per cent from June.

Average occupancy rates increased to a multi-year high of 79 per cent, a hair above June’s 78 per cent and just 4 percentage points shy of the pre-pandemic rate of 83 per cent clocked in both December 2019 and January 2020.

Growth was also seen in July across all hotel categories, with ARRs of $126.44 in the economy segment, $206.80 in the mid-tier segment, $301.07 in the upscale segment and $538.27 in the luxury segment.

For the year to date, overall room revenue was $1.39 billion, higher than the amount earned for the whole of 2021.

For the first seven months of the year, ARR reached $220.93, up 47.2 per cent compared with the same period in 2021.

RevPAR was up 102.4 per cent for the period to $153.43, STB data showed.

The average occupancy rate rose 18.9 per cent from the same period last year to 69.5 per cent. THE BUSINESS TIMES

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