Will slipping RevPAR continue to chip at hoteliers' profits in H2?

Scheduled completions this year have been delayed to 2017.

Singapore hospitality players can stop losing sleep due to waning revenue per room (RevPAR) in H2, as analysts see the decline decelerating in the latter half of 2016.

According to a report by DBS, the slowdown is thanks to some hotels scheduled to be completed later this year being delayed into 2017. Overall, 2,866 new rooms will be added in 2016 compared to the 3,930 in the prior estimate.

On top of this, hotels should benefit from the general seasonal uplift.

Meanwhile, DBS reported that RevPAR in Q2 sank at a faster rate than in Q1. This is due to impact from CDL Hospitality Trust and Far East Hospitality Trust's (FEHT) asset enhancement initiatives (AEI), lack of boost from SEA Games last year, sustained weakness in corporate demand, as well as excess supply.

DBS noted that FEHT outperformed the sector with RevPAR jumping YoY largely to the completion of AEI at Intercontinental Hotel.