Why you might want to consider booking a hotel room far more in advance

OCBC exprects demand to outsrip hotel room supply over the next two years.

According to OCBC Investment Researchm oOver 2012-2014, it expects demand at 6.4% p.a. to comfortably outstrip hotel room supply of 4.8% p.a. The demand for non-Luxury hotels will probably be faster than the expected
6.4% industry average, it noted.

Here's more from OCBC:

For the Singapore hotel industry, we expect a hotel room supply growth of 4.8% p.a. for 2012-2014 

We see a trend where the lower the tier, the more supply growth in relative terms is projected to take place. Specifically, Luxury hotels will see hotel room supply grow at 1.6% p.a.;

Upscale hotel rooms at 3.4% p.a.; Mid-tier at 7.0% p.a. and Economy will expand at 7.2% p.a. The Mid-tier category shows a higher-than-average growth rate while Upscale category shows a lower-than average growth rate.

On a combined basis, Mid-tier and Upscale categories will grow at 4.8% p.a., in line with how the overall stock is expected to grow.

Being an established tourist destination that continues to mature, Singapore can expect that its fraction of non-Luxury hotels will increase. 

According to hotel consultant PKF, tourist destinations generally start out attracting explorers who tend to have better financial means. As the destinations become well-visited, a wider spectrum of visitors will demand a diversified hotel supply.