Rates for hotel rooms continue to rise

Rates for hotel rooms continue to rise

Rates for hotel rooms in Singapore continue to rise even with the increase in supply, according to a report by hospitality consultant CBRE Hotels.

Hotel room rates in 2010 increased 11.3 per cent with mid-tier hotels registering the highest increase at 22.4 per cent to S$168.50 per night, according to the Singapore Tourism Board.

CBRE Hotels expects room rates to increase between 10 to 15 per cent this year.

Hotel occupancy rates have also benefited from the increase in visitor arrivals to Singapore which hit an all-time high of 11.6 million last year.

CBRE Hotels said hotel occupancy rates hit 85.6 per cent for 2010, and levels will be at least 83 per cent and as much as 86 per cent this year.

It expects that the additional 1,500 hotel rooms which will be added to the market this year will be matched by the good level of increased demand.

Revenue per available room (RevPar) grew by 24.7 per cent in 2010 to S$181.64 and is likely to grow between 7.5 to 10 per cent this year.

Rates for economy hotels grew the most at 41.8 per cent and upscale hotel rates climbed 28.3 per cent.

The report also mentioned that the supply of boutique hotels is likely to grow with investors showing keen interest in converting conservation buildings for this niche market.

~News courtesy of Channel Newsasia~