Channelnewsasia.com | Posted: 20 March 2013 1951 hrs
SINGAPORE : The number of hotel rooms in Singapore is expected is to grow by more than 20 percent to about 53,000 rooms by 2015.
This is according to a research report by property consultancy Knight Frank.
It says mid-tier hotels like Dorsett Regency Hotel, Ramada Singapore, and Changi Cove Hotel, will form almost half of the total future supply.
With an influx of new rooms in the market over the next two years, Knight Frank expects occupancy rates to drop marginally but still above the 80 percent mark.
Average occupancy rate stayed firm at 86 percent in 2012 from a year earlier.
However, average room rates grew 5.7 percent on year to S$261 last year.
But Knight Frank says average room rates may also fall marginally to account for the lower occupancy levels.
This comes on the back of the stronger Singapore dollar affecting budget sensitive tourists.
Meanwhile, investment sales of hotel real estate remained active last year with a total transacted value of S$1.45 billion - a decline of 7.6 per cent from a year earlier.
Major transactions included Klapsons The Boutique Hotel, Hotel Grand Pacific, and Hotel Windsor.
1,200 new hotel rooms were also completed in 2012 of which 70 per cent were located in W Singapore, Equarius Hotel and Beach Villas on Sentosa.
Looking ahead, Knight Frank says the outlook for the hospitality sector remains bright despite the reduction in room rates and higher cost of operations arising from higher foreign labour levy.
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