However, in a positive sign for operators’ revenue, the supply of new rooms is growing at a much slower pace after the government sold less land for hotel developments. Cushman forecasts an average of 764 extra rooms per year from 2018 to 2022, down from 3,357 annually between 2014 and 2017.
And the industry is also spreading its net wider, targeting locals for “staycations.” Far East Hospitality Holdings Pte. is among firms opening mid-tier hotels which may appeal to this segment of the market.
Singapore’s residential market posted a recovery after a four-year slump while prime office rents are up about a fifth from a low at the beginning of 2017.
This article was provided by Bloomberg News.