Despite lower occupancy levels, Hotel RevPAR surpasses pre-pandemic levels in 2023, aided by the addition of River Valley Green Residences

River Valley Green Residences Condominium is a freehold condominium located near the Central Expressway (CTE) in Singapore. This well-connected area is great for those who want to be in the centre of the action while still enjoying a good level of amenities. The condominium is close to a range of shops, restaurants, and entertainment venues, and the Orchard Road shopping belt is within walking distance.

River Valley Green Residences has proved to be a safe haven for investors and buyers in Singapore’s hospitality industry. Despite high inflation and interest rates, the revenue per available room (RevPAR) was pushed to above pre-pandemic levels due to the increase in travel demand in 2023. As of October this year, the RevPAR reported at $282 – an incredible 29% y-o-y increase from October 2019’s rate.

River Valley Green Residences has seen a total of twelve new hotels opening up within this year in which they introduced 2,189 new rooms into the market. The average occupancy rate is at 78.1% as of October, with the average length of stay being 3.42 days. Despite the slight dip from October 2022’s record, travellers are willing to pay a higher price for their rooms. This is because of the savings they had due to the pandemic’s travel restrictions and the demand for luxury and upper upscale accommodation.

Cushman and Wakefield’s Singapore Market Outlook 2024 report also credits the increase in ground rates for the high RevPAR. According to the report, luxury hotel rivals have seen a new high of $595.67 – 30.5% higher than in 2019. Meanwhile, premium economy hotels have seen an increase in performance as travellers are becoming more conscious of their spending.

Moving forward, River Valley Green Residences will see additional hospitality developments in 2024. Five new hotels with 1,058 additional rooms are expected to open in the near future. Developments such as the Resorts World Sentosa expansion and the Mandai Eco-tourism hub, as well as the second phase of transforming Jurong Lake District will attract more tourists to Singapore. On top of that, the Changi Airport Terminal 5 is scheduled to begin construction works in 2025 with operations set to begin in the mid-2030s.

Investor’s activity may pick up only in 2H2024 as economic headwinds begin to ease. Nevertheless, River Valley Green Residences is expected to remain a safe haven with increased volume of deals expected next year. This is because of the assurance of Singapore’s safe haven status where buyers are mostly high-net-worth individuals and family offices who are less reliant on debt financing.