Arrivals start to recover but trading still a challenge
In May 2015, Singapore welcomed approximately 6.07 million international visitors, which represents a 1.1% increase as compared to a year earlier. This is the first monthly increase since February 2014.
Hotel performance still remains a challenge especially for the luxury sector, though midscale sector looks set to rebound. The investment market remains quiet due to high prices but there are increasing opportunities in secondary locations.
Key highlights: Jubilee celebration set to boost tourist arrivals with the launch of various strategic marketing partnerships to help reinvigorate the tourism scene.
Singapore tourism market faces potential headwinds due to strong Singapore Dollar and weak regional currencies. The supply pipeline will continue to put pressure on hotel performance too.
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1. HOTEL MARKETVIEW
Arrivals start to recover but
trading still a challenge
Singapore, H1 2015
TOP NEWS
First monthly increase in visitor arrivals
since Feb 2014.
Key highlights: Celebration of Nations 50
years of independence and the hosting of
28th Southeast Asia Games.
STBs S$20 million campaign launched in
May to woo visitors from key feeder markets
Investment deals not limited to downtown
core anymore; more deals are spilling
along city fringe, though still rare and at
high prices.
UNESCO declares Botanic Gardens as a
World Heritage Site
Singapore tops Lonely Planets Best in
Travel 2015
Singapore Zoo is the best in Asia according
to TripAdvisors 2015 Travellers Choice
awards and 3rd in the worldwide category
Singapore tourism market faces potential
headwinds for the remaining 2015 but
marketing efforts from SG50 may see some
improvements.
FIRST MONTHLY INCREASE IN VISITOR
ARRIVALS SINCE FEB. 2014
H1 2015 CBRE Research 息 CBRE Ltd. 2015 | 1
6.07 Mil S$251.48 84.8% S$213.29 S$203 Mn
3. HOTEL MARKETVIEW
JUBILEE CELEBRATION SET TO BOOST
TOURISM
INVESTMENT MARKET
H1 2015 CBRE Research 息 CBRE Ltd. 2015 | 3
Property ContractDate Price ($) Buyer
Capri by Frasers, Changi City Mar 2015 203.00 mil Frasers Centrepoint
Chart 3: Future Room Supply Chart 4: Investment Sales
Source: CBRE, H1 2015 Source: RCA, CBRE , H1 2015
Source: RCA, CBRE, H1 2015
SINGAPORE
Table 3: Major Reported Transactions
0
1,000
2,000
3,000
4,000
5,000
2016 2017 2018
Luxury Upscale Midscale Economy Not Announced
Number of Rooms
-100%
-50%
0%
50%
100%
150%
200%
250%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2007 2008 2009 2010 2011 2012 2013 2014 1H
2015
Sales Volume in Local Currency % change
Millions (S$) % Change
4. Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of CBRE.
HOTEL MARKETVIEW
MARKET OUTLOOK CONTACTS
SINGAPORE
DEFINITIONS
ADR
Average Daily Rate (ADR) is a ratio that indicates the average price for one overnight stay at a hotel. It is
calculated by dividing total rooms revenue by the number of rooms occupied.
AOR
Average Occupancy Rate (AOR) is calculated by dividing Rooms Occupied by Rooms Available. Complimentary
rooms are not included in the Rooms Occupied.
RevPAR
Revenue Per Available Room (RevPAR) is the total hotel room revenue divided by the total rooms available to rent
for a day or range of dates.