Hotel owners happy in Singapore?

They must be with revenue per available room up more than 19% in January and February.

According to the Singapore Tourism Board, RevPAR for Singapore hotels for the first two months of 2012 climbed 19.1% YoY on the back of a 14.5% YoY increase in room rates and an increase in occupancy rates.

Meanwhile room rates at M&C’s five Singapore hotels are expected to grow 5% YoY from ~S$219 in 2011, while occupancies could climb by 2-3 ppt from 87%.

Here's more from OCBC Investment Research:

These above-mentioned M&C hotels (Orchard Hotel, Copthorne King’s Hotel, Grand Copthorne Waterfront Hotel, M Hotel and Studio M Hotel) are owned by CDLHT and M&C is the master leasee.

CDLHT receives rent in the form of 20-30% of the hotel revenue and 20% of the hotel gross operating profit, subject to minimum fixed rents. The hotels constituted 60.5% of CDLHT’s 2011 gross revenue. CDLHT has one other hotel in Singapore – Novotel Clarke Quay, which is managed by Accor and which we assume will perform similar to the M&C hotels.

We are raising our RevPAR growth rate assumption from 5.5% to 7.5% for CDLHT’s Singapore hotels in 2012.