Latest stats from STB: Growing hotel room demand and new available room nights

Available room nights increased from 1.65 million in January 2023 to 1.9 million in October 2023.

Average hotel occupancy rate increased by 7.2% to 80.82% from January-October 2023, year-on-year.
Average hotel occupancy rate increased by 7.2% to 80.82% from January-October 2023, year-on-year. Photo Credit: MBS

Singapore hotel average room rates reflected the lowest rates in March 2023 and the highest in September 2023, according to the latest January-October 2023 statistics from the Singapore Tourism Board (STB). Next year, with major concerts taking place in March, such as Taylor Swift and Rod Stewart concerts, average room rates will be expected to be skewed towards a higher number that month.

Meanwhile, hotel occupancy rates showed rates declining to 78.1% in October 2023, down from September's 82.7%. In comparison to the previous year, a 6.2% decline was recorded, as was expected with the slew of new hotel openings this year.

Sustained high demand

For planners, the news of available room nights which have increased from 1.65 million in January 2023 to 1.9 million in October 2023 might be something to cheer about, but this enthusiasm will be tampered by the sustained high demand with the average occupancy rate increasing by 7.2% to 80.82% from January-October 2023, year-on-year.

Average room rate was S$278.08 (US$208.20) in October, lower when compared with the average room rate of S$282.81 from January to October 2023.

Luxury hotel ARR:

Lowest in March 2023: S$561.51

Highest in September 2023: S$698.76

October 2023: S$581.75

Upscale hotel ARR:

Lowest in March 2023: S$316.18

Highest in September: S$385.29

October: S$321.10

BCD Travel expects Singapore’s hotel average daily rate in 2024 to rise by 4.8%. The biggest rate increase in APAC is expected to come from Japan (10%) and India (10%).