Singapore Hotels - We Are The Champions

Singapore Hotels - DBS Research 2023-12-05: We Are The Champions

SGinvestors.io

Published: 2023-12-17 07:57 PM

CapitaLand Ascott Trust (SGX:HMN) CDL HOSPITALITY TRUSTS (SGX:J85) FRASERS HOSPITALITY TRUST (SGX:ACV) FAR EAST HOSPITALITY TRUST (SGX:Q5T)

The Singapore hospitality sector maintained its upward trajectory in 2023. The industry experienced full normalisation for the most part this year, mainly with the return of the missing piece of the travel parcel, that is, China, after its reopening at the start of the year. The expected return of Chinese tourists did not play out as expected, with slower recovery numbers and a general trade down in spending patterns.
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For 10M23, it can be observed that the ex-China tourist arrival count has normalised to ~78% of 2019 levels, with a healthy momentum on a y-o-y basis. The lack of a full recovery we attribute to both budget-conscious travellers and the gap in the recovery of MICE-related demand.
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MICE events continue to trend healthily in Singapore, which has seen the Formula One affairs making its annual mark in the form of RevPAR (revenue per available room) hikes across the months of September and October; and as a key concert hub in APAC, Singapore is attracting a slew of A-list celebrity concerts in the likes of Charlie Puth and Taylor Swift. Trade fairs and conferences are still short of a full recovery, with the Singapore Tourism Board (STB) expecting a full recovery only in 2024 to 2025.
Globally, MICE events continue to see good traction, in line with recovery expectations. The International Congress and Convention Association (ICCA) shared that approximately 85% of meetings were held in-person, with the remaining still adhering to some form of COVID-19 arrangements i.e., hybrid or virtual meetings.
The number of global conferences held last year (identified by ICCA), at 10,500, is still playing catch-up to the numbers before the pandemic, when a total of 13,254 meetings were held globally in 2019.