AVERAGE room rates (ARR) and other key measures for Singapore hotels in November were either flat or slightly down from the month before, the latest data from the Singapore Tourism Board showed.

The latest figures came as international visitor arrivals fell for the fourth straight month to around 1.1 million in November from about 1.12 million arrivals in October, a dip of approximately 2.3 per cent.

Govinda Singh, Colliers’ executive director and head of hotels and leisure and real estate advisory, said November’s figures suggest that average rate growth may have peaked for most hotel segments – at least for now – as consumers grow more price-conscious.

“In addition, with the easing labour shortages, hoteliers now also have the confidence to boost occupancy levels, especially at big box properties, which will dilute average rates,” he said.

ARR slipped 0.3 per cent to S$277.40, from October’s revised rate of S$278.42. It was also down 1.8 per cent from the year-ago period.

Overall hotel room revenue dipped 0.7 per cent on the month to S$408.8 million, from S$411.8 million in October. But on a year-on-year basis, it was up 4.7 per cent.

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In contrast, revenue per available room (RevPAR) nudged up 1.2 per cent to S$219.13, from S$216.60 in October. It fell 9.5 per cent from October 2022, and marked the second month in a row in which RevPAR recorded year-on-year declines.

November’s average occupancy rate inched up slightly to 79 per cent, recovering from the preceding month’s 77.8 per cent. On the year, it was down 6.7 per cent.

ARRs were flat sequentially for most of the hotel categories in November. The luxury segment was the only one to buck the trend, with ARR nudging up to S$595.96 from S$581.75 the preceding month.

Singh noted that the luxury segment is typically the last one to slash its prices, even as they ease across the board. This is due to the fact that its target customers tend to be more price-resilient.

“In the peak December holiday season, expect average rates across all segments to return to growth, once again led by luxury,” he said.