What ails thee…
2013 has not been an easy year for Singapore hoteliers, with revenue per available room (RevPAR) for 10M13 falling by 1.1%. While the decline does not look significant, note that the figures may have been skewed upwards by the continued strong performance of the IRs’ hotels (e.g. MBS experienced RevPAR growth of ~10% for 9M13), which account for ~8% of the total stock. CDL Hospitality Trusts’ Singapore hotels experienced a RevPAR decline of 7.7% for 9M13 and FEHT’s Singapore hotels have been missing their IPO revenue forecasts.
Key reasons for the challenging hospitality environment include:
1) growing hotel room supply,
2) a strong SGD relative to most regional currencies and
3) negative business sentiment, especially regionally, leading to smaller travel budgets.
Oversupply situation for 2013-2015 The Singapore Sports Hub is scheduled to open in