Hoteliers brace for slower growth on back of massive room glut

Occupancy slipped to 84.3%.

Hotel occupancy is expected to fall due to a growing supply of rooms in 2015, compounding the effect of lacklustre tourist arrivals in 2014.

According to data from Cushman and Wakefield, hotel occupancy posted a 2% year-on-year drop in 2014, from 86% to 84.3%.

This was impacted by negative events in the ASEAN in 2014, such as political instability and a spate of aviation disasters.

Despite a decline in arrivals, demand for room nights has increased in the country. Singapore tops the region at an average room rate (ADR) of $276 (US$207) .

“For Singapore, 2014 has definitely seen some serious challenges - with the largest part of the inbound market slowing down. Despite this slowdown, the overall performance of the market has not been significant. The performance has been as robust as ever with occupancy dropping only 1.7% points despite the addition of new supply and the rates have also seen an improvement,” stated Akshay Kulkarni Regional Director, Cushman & Wakefield – Hospitality, South & Southeast Asia.