SINGAPORE (July 12): RHB Research expects Singapore’s hospitality sector to finally turn around in 2018, on the back of easing hotel supply, continued visitor arrival growth, and a pick-up in corporate activities.
“Singapore Hotel RevPAR (revenue per available room) has fallen by 12% from its peak and is now back to 2008 levels,” says RHB analyst Vijay Natarajan in a Wednesday report. “With supply pressures easing by end-2017, hoteliers are expected to see some respite.”
In addition, Natarajan estimates that the opening of Changi Airport Terminal 4 in the third quarter of 2017 could increase Singapore’s visitor arrivals by around 5%. Year-to-date, visitor arrival has grown 4.4% y-o-y, after climbing 7.7% y-o-y in 2016.