CityDev sets its sights on other Asian markets as local occupancy falters

Its Singapore RevPar performance dipped by 10.7% in 2Q.

The hospitality company can’t quite fill its hotels locally, but it can bank on its other Asia markets to pick up the slack.

According to a report by UOB Kay Hian, global hotel RevPAR declined 3.7% in 2Q as occupancy and average room rates clocked respective declines of 1.4ppt and 2.3% yoy.

However, the bright spot in 2Q16 came from the rest of Asia (RevPAR up 5.1% yoy) on the back of higher occupancy and daily rates, the report noted.

“Management attributed the dismal performance in New York (1H16 RevPAR: -15.8% yoy) to increased room supply, stronger US$ and the ongoing refurbishments,” the report said.

Meanwhile, City Developments is also looking at cost containment to improve margins, even floating the prospects of hiring consultants to minimise operating costs, the report added.