Chart of the Day: Hotel room supply to outpace demand in 2017

Supply will boom 6.1% next year.

There will be a 6.1% growth in hotel room supply in FY17, outpacing demand amidst a weak corporate environment.

This is according to OCBC Investment Research, which reported that the total room stock increased 2.4% in 9M16, less than the 10.3% jump in tourist arrivals from Jan-Aug.

"Nonetheless, we believe the weak corporate demand contributed to the 2.7% decline in Jan-Aug RevPAR," the firm stressed.

Looking ahead to 1H17, OCBC believes the room supply injection will not be adequately matched by a growth in demand.

"Even though we remain positive on visitor arrivals for next year, the outlook for corporate demand remains weak. Furthermore, the supply overhang is set to worsen, contributing to downward pressures on RevPAR," it noted.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
SBR 2 Lorem Ipsum [8 May]
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Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley