Chart of the Day: Hotel supply growth expected to dip to 1.2% in 2018

Should it hit 1.2%, this will be the lowest since 2007.

This chart from OCBC Investment Research shows that according to Horwath HTL forecasts, the total room stock is expected to increase only 1.2% in 2018.

Singapore hotel supply growth has been trending down has been trending down since 2015 at 6.5% to 2017 at 4.5%. Should hotel supply grow by only 1.2%, this will be the lowest since 2007 or in 11 years.

OCBC analyst Deborah Ong said this will likely be less than the increase in visitor days this year.

However, Ong noted that should both leisure and corporate demand remain healthy, "the relatively muted room pipeline from 2018F to 2020F should put the Singapore hospitality market in a position for a multi-year upswing."

In 2019, the supply is expected to grow by 2.5% due to some upcoming launches, whilst in 2020, the supply is expected to rise by a measly 0.6%.