Today's hotel room rates are just 2.3% cheaper than 2Q08 peak
Surprisingly, higher room rates are not the ones driving hotels' profitability.
According to Nomura Research, excluding Studio M, CDREIT’s SG hotels’ average RevPAR continued to climb in 2Q12, up 5.9% y-y to reach SGD217 or just 2.3% below its 2Q08 peak of SGD222.
It appears that the RevPAR growth was driven more by higher occupancy (rather than by higherroom rates), which was similar to the previous quarter.