S’pore to see an additional 10,000 4 and 5-star hotel rooms by 2012

Source : Channel NewsAsia - 13 Apr 2009

Singapore is expected to see among the largest growth in hotel room numbers compared to other markets in the region.

Over 23,000 new four and five star hotel rooms are expected to come on stream in key Asian cities such as Bangkok, Hanoi, Ho Chi Minh City, Kuala Lumpur and Singapore by 2012.

Some 10,000 will be in Singapore. That’s nearly 39 per cent growth over Singapore’s current numbers.

Despite the economic slowdown, real estate services firm CB Richard Ellis said demand for these new rooms is expected to be strong.

One of the reasons for this is an expected 20 per cent drop in room rates this year due to the slowdown which could attract more consumers.

Experts said that Singapore hotels ran at as much as a 90 per cent occupancy rate in 2007 and an 80 per cent occupancy rate in 2008.

This caused a limited availability of rooms at times which may have resulted in potential guests being turned away.

The additional capacity will help to serve this problem in the long term.

Others said events such as the 2010 Youth Olympics and the opening of the Integrated Resorts at the end of this year will also attract additional tourists to Singapore.

Donald Han, managing director of Cushman and Wakefield (Singapore) said that the Integrated Resorts could also prolong the average tourist visit by one more day.

Robert Mcintosh, executive director, CBRE Hotels, Asia Pacific, said: “In terms of stability Singapore looks very good because of the tourism drivers of the IR, and new facilities. It has also got a good infrastructure and a very strong marketing.

Other countries vary in the way they are going to be able to respond. Some small markets are going to be able to grow quite quickly. For example, Bali has grown very well in the last few months. But in general, Singapore is still looking very strong.”