Singapore hotels benefit from resilient tourism growth despite global economic headwinds

• As of YTD September 2025, international visitor arrivals to Singapore recorded a muted 2.3% annual growth. Enhanced air connectivity helped cushion Singapore’s tourism sector from broader economic headwinds, including a strong currency, US tariff impacts and export challenges, ensuring a continued flow of visitors into the country.
• China (19.4%) maintained its position as Singapore’s largest tourism source market, followed by Indonesia (14.3%) and Malaysia (7.2%). Notably, Japan emerged as the strongest growth contributor among the top 10 source markets, with 9.9% annual growth.

Singapore remains the premier gateway for global hotel brands expanding into Asia despite modest supply additions

• Amidst the modest scale of new supply introductions, the 115-room Mama Shelter Singapore Orchard was the only hotel that opened in Q3 2025. This marked the French lifestyle brand’s inaugural entry into the Asian market.
• Singapore’s hotel supply growth maintained a steady pace of one hotel opening per quarter through 2025, but the market anticipated significant growth in Q4, with more than 50% of the year’s total room additions scheduled to open.

Softening performance and selective investment strategies are reshaping Singapore’s hotel market dynamics

• Trading performance continued to soften in Q3 2025, mirroring Q2 trends as RevPAR declined due to weakening in both ADR and occupancy rates, with ADR bearing the primary impact.
• Singapore secured 4th place in Asia-Pacific hotel investment despite cautious capital deployment amid economic uncertainty, with investors favouring boutique and hybrid extended-stay properties for their differentiated formats.

Outlook: A strong investment pipeline and Tourism 2040 Roadmap initiatives set a positive trajectory for Singapore hotels

• Following Singapore’s Tourism 2040 Roadmap, the market outlook remains positive, as new attractions, experiences and a robust MICE and leisure events pipeline position hotels for sustained demand growth.
• Looking ahead, hotel transaction values in Singapore are projected to exceed 2024 levels, driven by an anticipated acceleration in the second half of 2025 as a substantial backlog of deals in due diligence is completed.