On March 1, 2024, the Singapore Tourism Board reported a slight decline in the average room rate (ARR) for hotels in January, which fell by 1.4% to S$278.75 from S$282.60 in December 2023. However, this figure is still 2.3% higher compared to January of the previous year, which recorded an ARR of S$272.52.

The decline in ARR comes amidst a surge in tourism, particularly from China, leading to a significant increase in visitor arrivals. January saw a record 1,436,404 tourists, the highest since the COVID-19 pandemic. Correspondingly, hotel room revenue rose to S$423.2 million, reflecting a 4.6% increase from the S$404.4 million reported in December and a substantial 32.9% year-on-year growth.

Other key performance indicators also showed positive trends. Revenue per available room (RevPAR) climbed by 3.9% to S$217.76, up from S$209.53 the previous month, and marked a 13% increase year-on-year. Additionally, the average occupancy rate for January rose to 78.1%, up from 74.1% in December, although it remains below the pre-pandemic rate of 83% recorded in January 2020.

Performance varied across hotel categories. The luxury segment saw its ARR decrease to S$631.75, while upscale and mid-tier hotels recorded rates of S$321.27 and S$206.15, respectively. Conversely, the economy segment experienced an increase, with its ARR reaching S$141.78.

These mixed results highlight the ongoing evolution of Singapore’s hospitality sector as it adapts to changing market conditions and recovering tourist flows.