Singapore Hotel Demand Rises, Profit Margins Decline
Skift Take
Singapore's hotel demand is strong, but profitability is under pressure due to labor and rate constraints, with Marina Bay leading performance.
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.
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