Blockbuster events, tourist surge buoy Singapore’s hotel market: CBRE

Taylor Swift's concert was among the highlight events of 2024.

Singapore’s hotel market continues to benefit from a bustling events scene and the return of mainland Chinese tourists, according to CBRE. 

In its Asia Pacific Hotels & Hospitality’s Market Update, CBRE said the sector’s overall performance has been robust with occupancy exceeding 83.8% in March, closing in on the pre-pandemic levels of 84% in the same month in 2019.

The hotel industry also posted its highest Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) for the month of March, rising to $358.91 and $284.03, respectively, based on preliminary data from CoStar.

Taylor Swift’s six-night concert was among Singapore’s highlight events so far this year.

The strong performance, however, was not reciprocated by investors, with investment activity in the sector still far from historical levels.

CBRE expects investments to pick up in the latter part of the year once interest rates go down.

“Private investors will continue to drive acquisitions in 2024, with luxury and upscale assets their primary focus. Investors will also look to enter the nascent co-living market, which offers prospects for growth amid the significant shortfall in residential completions over the past five years,” it said.