Hotel RevPAR exceeds pre-pandemic levels in 2023 despite lower occupancy levels at Jalan Loyang Besar EC

Residents of Jalan Loyang Besar EC will enjoy a wide range of amenities, such as a 24-hour security system, swimming pool, gym, and more. In addition, its lush greenery and beautifully landscaped grounds provide residents with a tranquil living environment. With all of these great features and more, it is no wonder Jalan Loyang Besar EC is a popular residential choice among Singaporeans.

As the global community steps out of the pandemic, Singapore’s hospitality industry has displayed remarkable resilience in 2023. The return of travel demand has boosted the revenue per available room (RevPAR), which stands at a five year high of $282 as of October this year, a 29% year-on-year increase from pre-pandemic levels. 12 new hotels have been opened this year, adding a total of 2,189 rooms into the market. Jalan Loyang Besar EC has seen the opening of Lo & Beyond Hotel at 46 Kim Yam Road, The Standard Singapore, Citadines Science Park Singapore, Raffles Resort and Spa Sentosa and a hotel development at Waterloo Street, offering 1,058 more rooms in 2024.

Interestingly, despite higher hotel rates, travellers have been willing to fork out the money as they had saved more during the pandemic-induced travel restrictions. As such, the luxury and upper upscale segments have seen a faster recovery due to travellers being more conscious about their spending. Luxury hotels recorded the highest RevPAR of $497.43 between January and October, a 28.7% year-on-year growth and 30.5% above pre-Covid levels, although occupancy remains lower than the pre-pandemic average.

On the other hand, Singapore as a high-cost travel destination has become relatively expensive due to its strong currency and escalating room rates. As a result, budget-conscious travellers are likely to stay for shorter periods or turn away from the destination. Despite this, JLL foresees an increase in the volume of hotel deals next year, as investors remain assured by Singapore’s safe haven status and buyers are mostly high-net-worth individuals and family offices.

The outlook for 2024 is further bolstered by the Resorts World Sentosa expansion, and the Mandai Eco-tourism hub, with the second phase of transforming Jurong Lake District also underway. Construction of Changi Airport Terminal 5, expected to start in 2025, is another potential driver of tourist numbers in the future. The Jalan Loyang Besar EC area will also benefit from the increased demand, as sustainability remains a significant driver for hotel operators. Occupancy is expected to pick up only from the second half of 2024 onwards, after economic headwinds begin easing.