Singapore Hotel Demand Rises, Profit Margins Decline
Skift Take
STR reported China hotel data for the week ended February 22. Hotel RevPAR was up 12.5% year over year. RevPAR was up against an easy decline of -25.1% in the year-ago week. This is the final touches of results that were impacted by the Lunar New Year timing in 2025 and in 2024. ADR was down -7.9% year over year for the 2025 week, while occupancy surged 22.2%.
STR's Senior Director of APAC, Jesper Palmqvist, noted that despite hotel demand being up so much in Singapore so far this year, profitability is under pressure due to constraints on labor and rates. He noted profit margins being down -3% to -4% in Singapore in the past year, while most Southeast Asia markets were able to grow margins. He noted the Marina Bay market has been the top performer so far in Singapore to date.
New Zealand's tourism sector saw an increase in total border crossings by 9.5% year on year, according to Horwath HTL's Market Report New Zealand. Significant growth from Australia, China, the USA and Singapore was seen. Modest growth in the hotel sector, RevPAR up 5.7%, was led by Queenstown with a 17.2% rise in RevPAR, while Christchurch led in occupancy rates. In December 2024 and January 2025, the total number of non-New Zealand residents crossing the border rose by 9.5% compared to the previous year. That is still down -11% from pre-Covid. Auckland was interesting as they had a big jump in the supply of rooms but demonstrated resilience, with room nights sold up by 6.5% during their summer period. Horwath HTL said this is all encouraging, but they do not expect a full recovery of international visitor arrivals until 2027.
The Philippines Dept. of Tourism is pushing for the expansion of the country's hotel industry to accommodate the increasing number of visitors and strengthen the Philippines' position as a leading travel destination. The DOT said visitor arrivals remain lower than some ASEAN neighbors but the steady influx of tourists has boosted local hotels and businesses. The DOT and Philippine Hotel Owners Association have launched the Philippine Hotel Industry Strategic Action Plan 2023-2028. The DOT has been pushing for the tourism sector's inclusion in the Strategic Investment Priority Plan and is also working to expand the list of eligible tourism enterprises under the SIPP to encourage participation from major developers and small-scale investors. The DOT has facilitated the removal of locational restrictions for tourism projects, opening more areas across the country to hotel investments.
Wyndham Hotels CEO Geoff Ballotti told the Economic Times that India had the highest growth rates for the company in 2024 in terms of new hotel signings and executions of contracts than in any other market worldwide. Wyndham has nearly 70 franchised hotels in India with more than 5,500 rooms with another 50 hotels in the pipeline. Wyndham's global owner retention rate reached a record level of 95.7% last year, but India's retention rate is higher than 97%. Hotel signings in India grew by 25% last year with openings up 22% year on year. RevPAR in India saw double-digit growth for Wyndham. Along that theme, Wyndham announced they officially launched Wyndham Grand Fatehsagar Lake, Udaipur. The hotel spans 9.5 acres and features 140 luxurious rooms and amenities. The Vintage Lawn is one of the largest event spaces in the region. Additional facilities include a grand banquet hall, convention center and meeting rooms, along with an entertainment zone complete with outdoor sports and the largest amphitheater in Udaipur. There are three restaurants available for their guests.
Hilton announced the opening of Hilton Garden Inn Surat City Centre, a new addition to its portfolio in Gujarat, India and also the first Hilton Garden Inn in the area. Unity Holidays LLP developed the hotel, which features 104 rooms, a restaurant and a 24/7 convenience store. The property also offers over 2,900 square feet of versatile meeting space, a fitness center and an outdoor swimming pool. Hilton's portfolio of trading and pipeline hotels in South Asia now stands at 64.
Marriott International recently signed an agreement with Jee Teng Hospitality to open Sheraton Nai Harn Beach, a newly built resort that will mark the debut of the Sheraton Hotels & Resorts brand in Phuket, Thailand. The property is expected to feature 600 rooms, suites and villas. This will follow the upcoming launch of Sheraton Nai Harn Beach, also in collaboration with Jee Teng Hospitality. This resort will have 400 keys, plus they have three additional projects in the pipeline. Marriott said Phuket, Phang Nga and Krabi now form Marriott's second-largest destination in Thailand, with 17 hotels and resorts.
Amari Vientiane is the latest addition to ONYX Hospitality Group's portfolio, with its grand opening to be on March 1. The hotel is located along the Mekong River in Vientiane's city center and features 248 rooms, ranging from Deluxe Rooms to Presidential Suites. There is an Executive Private Dining Area along with a rooftop bar and the Amaya Food Gallery restaurant. Amari Vinetiane also includes a fitness center, Breeze Spa, swimming pool, children's pool and the Grand Ballroom for meetings and events, along with various meeting rooms. For ONYX, this is the second Amari property in Laos following the opening of Amari Vang Vieng in 2018.
TUI Blue is opening a new hotel in Nha Trang, Vietnam. The TUI Blue hotel has 316 rooms, an outdoor pool, two restaurants, including a buffet on the rooftop. This is the lifestyle brand's second hotel in Vietnam with the other TUI Blue on the country's central coast, close to Hoi An.
The Seoul, South Korea City Council approved the urban management plan to allow a 49-story tourist hotel, officetel, residential buildings and cultural facilities on the former site of the Prima Hotel in Cheongdam-dong, Gangnam.