In May, Singapore’s hotels reported a significant surge in overall room revenue, hitting S$398 million, marking a 9.1% increase from April’s S$364.7 million and a remarkable 72.7% rise compared to May 2022’s S$230.5 million. According to data from the Singapore Tourism Board (STB), this revenue reflects the highest level recorded in 2023.

Despite this growth, the average room rate (ARR) saw a slight decrease of 0.4% in May, dropping to S$270.75 from S$271.89 in April. However, year-on-year, the ARR increased by 21.7%. The easing of Singapore’s border restrictions in April 2022, which removed Covid testing requirements for visitors, has contributed to this upward trend.

May 2023 also saw an increase in revenue per available room (RevPAR), which rose 2.5% to S$216.19 compared to April, showing a 33.5% year-on-year growth. Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield, noted that available room nights increased by 6.4% month-on-month to reach 1.84 million, surpassing pre-pandemic levels of 1.81 million nights recorded in May 2019.

The stable RevPAR indicates that current average room rates may persist, with hotel profitability exceeding pre-pandemic levels due to rising room rates outpacing operating costs. Wong predicts that the ongoing recovery in tourism will positively impact future hotel performance, with RevPAR expected to grow alongside improved occupancy rates.

May’s average occupancy rate climbed to 79.9%, up from 77.6% in April, although it remains below the pre-pandemic rate of 83% from January 2020. Tourist arrivals exceeded one million for the third consecutive month, although there was a slight month-on-month decline, marking the first drop since the pandemic began. Analysts note that visitor numbers from China are currently around 32% of 2019 levels.

While some budget-conscious travelers may hesitate due to increased airfare and hotel prices, initiatives by the STB to enhance Singapore’s appeal as a concert destination have attracted attention, featuring performances from major artists like Coldplay and Taylor Swift.

As of May, total room revenue for the year reached S$1.8 billion, a 133.5% increase from the same period last year. The ARR for the first five months rose 34.5% to S$271.17, while RevPAR surged 62.7% to S$212.04, and the average occupancy rate improved by 13.6% to 78.2%.