Increased corporate travel demand drives hotel room rate hikes

Moderate rebound in corporate travel continues throughout 2011 benefitting hoteliers, says Royal Plaza on Scotts which already saw 11% increase in the average room rates (ARR) in the first six months while enjoying healthy occupancy rate at 85%.

Moreover, the five-star Royal Plaza on Scotts which also bills itself as the “preferred business hotel in Singapore” sees its ARR increasing to $360 at the end of the year compared with just $260 in 2010 and occupancy rate skyrocketing to 91%.

“Demand will be fueled by regional business growth in countries in Southeast Asia such as China and India, and rebound in corporate travel and meetings. Tourists arrival is set to continue to enjoy good growth, however, it will have lesser impact on the hotel’s occupancy as we have added room inventory in the market this year and next,” said Samantha Wong of Royal Plaza on Scotts’s marketing communications department in an interview.

“The hotel will continue to do well with a good growth in ARR as we foresee an increase of 3% to 4% from September to the end of this year, where occupancy rate is usually higher due to corporate business during this time period,” she added.

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