The best is yet to come for SG's hospitality market: C&W

In April, Revenue Per Available Room (RevPAR) reached a historical high of $212 per night.

With China's reopening expected to pick up in the second half of the year, Cushman & Wakefield (C&W) said the "best is yet to come" for Singapore's hospitality market.

According to C&W, the number of visitor arrivals in Singapore is on course to surpass the Singapore Tourism Board's (STB) forecast of 12 million to 14 million in 2023.

"The mid to long-term outlook for the hospitality market remains positive on the back of a moderate level of new hotel room supply in the next few years and upcoming tourism initiatives that would raise Singapore’s appeal as the region’s tourist destination," C&W said.

Leading the hospitality market's growth in 2023  will be the luxury hotel segment. Data from C&W showed that the Revenue Per Available Room (RevPAR) of the segment had already reached $466 as of April 2023 year-to-date, exceeding pre-COVID levels and growing 22.3% so far this year.

"Luxury hotels have benefited from rising affluence and increasing consumer willingness to spend on experiences. According to Credit Swiss, the number of adults globally with wealth over US$100,000 would increase by 229 million from 2021 to 2026. Consumers are also now more willing to spend on accommodation to make up for lost time during COVID," C&W reported.