SINGAPORE hotels are starting 2015 on a positive note, confident that rates will hold steady despite a fresh injection of rooms into the city’s supply.
According to the latest Cushman & Wakefield’s assessment, hotels are expected to have closed 2014 at 84.3 per cent occupancy, down from 86 per cent in 2013, as a result of more rooms coming online and a significant drop in the number of Chinese visitors. Despite this, the average room rate (ARR) held steady at S$260 (US$195) compared with S$258 in 2013.
Hotels expressed the same optimism, and said the upcoming ASEAN Economic Community (AEC) 2015 will help boost ASEAN traffic towards the end of the year.
Royal Plaza on Scotts general manager, Patrick Fiat, said: “Royal Plaza closed 2014 with an occupancy rate of 89 per cent and ARR of S$290. We are expecting ARR to increase three to four per cent this year and occupancy to be similar to last year’s.”
The Westin Singapore general manager, Lance J Ourednik, is also optimistic the hotel will “experience healthy growth” in occupancy and ARR this year.
Similarly, Furama RiverFront general manager, Kwan Hun Fah, said: “We closed 2014 with occupancy above 80 per cent and we expect growth in 2015 of three to five per cent for both occupancy and ARR.”
He added: “We expect 2015 to pick up with AEC 2015 and other major events such as the SEA Games as we are one of the hotels providing accommodation to the athletes.”
While Fiat said the impact of AEC on the hospitality industry will only be felt from the end of this year, he added: “With this (AEC) in place, the ease of travel among ASEAN countries for both regional and long haul travellers is expected to increase.
“The joint efforts of AEC 2015 will result in a boom in the region as they encourage cross-border collaborations and investments. This will in turn drive business travel within ASEAN.”
Starwood Hotels & Resorts Worldwide regional vice president, South-east Asia, Charlie Dang, concurred: “We are hopeful AEC 2015 will make tourism even more attractive with favourable tourism policies, improved flight connections and a more aligned tourism plan.”
