Singapore hotel room rates at a record high as Revenue per Available Room (RevPAR) soars

Singapore, 7 June 2012 - ​In Q1 2012, Average Daily Rates and Revenue per Available Room (RevPAR) of gazetted hotels saw double-digit growth of 11.4 per cent and 14.7 per cent y-o-y to $259 and $224 respectively. In its latest report, Singapore Hotels Market View 2012, CBRE Hotels said that at this rate, Hotel RevPAR is at a historic high – a positive signal that the hospitality industry is performing very well.

Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific, said “The RevPAR on an annual basis for Singapore hotels is at a historical high, beating the October 2008 figure of $201. There is no clear sign at present that it has peaked. We will likely see it trending up further, buoyed by very strong visitor arrivals. The combination of gaming facilities and the massive increase in conference and exhibition space will enable the Republic to host larger business and MICE meetings, further building on its reputation as a top international meeting city.

Furthermore, leisure visitors will be drawn to new attractions and events hosted in the IRs, including Universal Studios, Marina Life Parks, the new ArtScience Museum, concerts and musicals featuring international stars.” However the rate of change in RevPAR is slowing and on a month on month basis is now less than 10 per cent. “At this rate, the sector is growing at a more sustainable level”, Mr McIntosh added.


Last year, gazetted hotels in Singapore registered an Average Daily Rate (ADR) of $245, which was 13 per cent higher than in the year before. During the Formula One event, ADR soared to $271. Occupancy averaged 87 per cent last year, with the July month recording an occupancy rate as high as 94 per cent. Due to these robust figures, RevPAR saw an increase of 14.7 per cent y-o-y to reach a record annual high of $212 last year.

The largest improvement in occupancy for 2011 was luxury hotels which grew by 174bps y-o-y to 80.5 per cent. Occupancy for upscale hotels was the highest at 87.75 per cent (up by 118 bps y-o-y) while the economy hotel tier was the only one that saw a decline in occupancy to 84.475 per cent (-138 bps y-o-y). In terms of ADR, upscale hotels saw the most increase of 14.1 per cent y-o-y to $278 while the economy tier grew the least (9.0 per cent y-o-y).

The high occupancy rate of 87 per cent was supported by various tourist events and attractions, particularly the Singapore Airshow. The bi-annual event in February helped boost arrival numbers as it records some 40,000 trade visitors and another 145,000 public visitors attending it. The remaining two hotels in Resorts World Sentosa opened in Q1 2012 which helped cater to the growing number of tourists at the integrated resort. The two IRs will continue to generate additional demand for both the tourism industry and the economy in general.

In Q1 2012, about 3.57 million tourists visited Singapore, about 15 per cent higher than the same period last year. The largest visitor source is the Asia region, which contributed 76 per cent of last year’s arrivals. The top five visitor markets were Indonesia, China, Malaysia, Australia and India. In Q1 2012, Japan overtook India for the fifth position.


In Q1 2012, three new gazetted hotels, the Bay Hotel, the Equarius Hotel and the Beach Villas, were completed and added 500 new rooms. In 2012, a total of 1,572 rooms will enter the market, resulting in a 3.7 per cent growth in the gazetted stock. A further pipeline of 2,450 rooms is expected by end 2013 and hotel projects currently in planning stage could contribute another 2,400 rooms. All in, the current stock of rooms could expand by 26 per cent by 2016.

The government has eight reserved hotel sites under its land sales programme whereby developers can apply to initiate a tender. These sites could potentially add up to some 4,000 new rooms to the current pipeline. The large pipeline could potentially exert a downward pressure on occupancy, ADR, and RevPAR in the medium term, if the current growth in visitor arrivals is not maintained.


Last year, hotel investment sales, including development sites, amounted to S$1.90 billion (US$1.49 billion), more than double that in 2010. Excluding development sites, trading in hotel assets totalled $1.31 billion (US$1.04 billion) in 2011 compared to $462.0 million in 2010. Notable deals include Crowne Plaza Hotel (S$250 million excl. land), Studio M (S$154 million), Ibis Novena (S$118 million) and a string of budget hotels. After China, Singapore was the most active investment market in 2011.

The recent instability in world economies appear to be having little impact on investor sentiment for Singaporean hotel stock and in many respects may further enhance interest, as Singapore is viewed as a strong, stable and transparent economy in which to invest. However, investment sales could moderate this year after an unprecedentedly high base in 2011.

In April 2012, Global Premium, the hospitality arm of Fragrance Group Ltd, raised S$117 million from its IPO. Two business trusts, M&L Hospitality Trust and Ascendas Hospitality Trust have deferred their IPO but could return to the market when conditions improve.


The $500-million, 28,000 square metres Marina Bay Cruise Centre Singapore (MBCCS) was completed this May. It is one of Asia’s biggest cruise centres and can handle 6,800 passengers at any one time.

Cruise passenger arrivals has been rising steadily at 3.6 per cent per annum over the last 10 years, reaching one million in 2011. With MBCCS, more and bigger cruise ships will be able to call on Singapore, and this will help realise Singapore’s potential as a cruise gateway to Southeast Asia and beyond. The MBCSS will help strengthen the tourism infrastructure and benefit the hospitality sector.


Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at