July RevPAR hits five-year high at $203.6

This is the highest so far for the year.

Singapore’s hotel revenue per room (RevPAR) broke the 200-mark, soaring to $203.6 in July, the highest for the first seven months this year and the best since 2014, according to a report by investment banking firm Jefferies Equity Research.

Meanwhile, RevPAR for the first seven months of the year also inched up to $186m.

Also read: Singapore's hotel RevPar hits $185 in H1

Tourism statistics show that for the month of July, the average occupancy rate was at 93.8% whilst the average room rate was $217. On year-on-date (YTD) terms, the average occupancy rate was 86.1%, 0.2ppt lower YoY, whilst the average room rate was marginally higher at $217. Additionally, RevPAR fell by 0.2% YoY to $186.

However, Jefferies noted that whilst sector statistics are positive, room rates have been higher in prior years at similar or lower level of occupancy, suggesting pricing pressures and demand issues. 

Also read: Hotel demand to continue outstripping room stock in 2019

“Weak corporate demand and economy may further cap pricing margins. That said, weakening currency and lower supply may benefit room rates and lower rates may help valuations,” the report read.

Comparing hotel REITs to the REIT index shows the SREIT index climbed 18% whilst the hotel REITs, namely CDL Hospitality Trust, Frasers Hospitality Trust and Far East Hospitality Trust, were flat, up at less than 10%.