LUXURY HOTELS IN SINGAPORE - ANALYSIS

Country Report | Feb 2020

HEADLINES Market Sizes

In 2019 the luxury hotels category sees a current value terms increase of 5% to reach Sales of Luxury Hotels
SGD2.0 billion – up from 2% growth the previous year Retail Value RSP - SGD million - Current - 2005-2024
Development of new sites and expansion of hotel offer boost category’s
performance in 2019 2,049 Forecast
2,500
Category’s competitive environment is relatively static in 2018, continuing to be led
by Marina Bay Sands Pte Ltd on 28% value share
Category set to see 5% current value CAGR over forecast period (3% constant value 2,000
CAGR)

1,500
PROSPECTS

Growing number of sites for luxury hotels, growth in corporate visitors 1,000
increases demand
The number of tourist arrivals to Singapore was moderate in 2019. However, 500
competition for luxury hotels continues, due to new entrants, arising from the growing
interest in acquiring sites for hotel use, conversion of commercial sites, and the
development of greenfield sites. One notable trend driving the increase in sales of 0
luxury hotels is the trend towards investments by tourist in “experiences”, hotel 2005 2019 2024
organised activities (such as seminars, events, etc.), technology, environmental
sustainability, and revamping of designs. Growth in corporate demand is also boosting
the performance of luxury hotels, as corporate visitors tend to book luxury hotel Sales Performance of Luxury Hotels
accommodation. With Singapore Tourism Board’s continuous efforts to introduce new, % Y-O-Y Retail Value RSP Growth 2005-2024
interesting leisure activities, as well as lining up a series of business events, Singapore
is well-positioned to attract a greater number of visitors over the forecast period, with
a likely positive impact on luxury hotels. Occupancy rates are set to remain strong,
4.5% Forecast
while average daily rates are expected to improve, as the supply of rooms is not 60%
expected to rise as rapidly as the increase in demand.

Hotel players utilise new tech advances to boost service and 40%
convenience for clients
Luxury hotels seek to adopt an increasing number of innovative ways to attract 20%
consumers. For instance, hoteliers have developed integrated mobile app functions
such as mobile check-in, seeking to offer greater convenience for their increasingly
mobile-connected consumers. Another aspect is experimentation with adoption of 0%
automation solutions, such as robots and artificial intelligence. The aim is to reduce
operational costs. For example, StarHub and ST Kinetics announced a partnership in
2017 to provide hotels in Singapore with TUG robots that can automate the laundry -20%
process. While innovation remains slow, an increasing number of hotels are expected
to adopt similar solutions. With such technologies in place, many will evolve into smart
hotels, offering guests high levels of service and convenience. -40%
2005 2019 2024

New hotel developments set to further boost category’s performance

Numerous new hotel projects are on the horizon for Singapore’s growing hotels
business. Accor SA’s Raffles Singapore reopened in August 2019, having been closed for
restoration since December 2017. Accor is also set to open the 5-star Pullman Singapore
hotel in 2022. This will feature a rooftop bar, health and fitness centre, and an
executive lounge. The 157-room Capitol Kempinski Hotel Singapore finally opened in
October 2018 following a series of delays. The establishment offers Singapore’s first
salt water relaxation pool, as well as direct access to the city’s legendary Capitol
Theatre, which can be used for special events and conferences.

COMPETITIVE LANDSCAPE
Increased number of business travellers boosts demand for upmarket
establishments
Marina Bay Sands and Raffles Place were increasingly popular among consumers in
2019. This is expected to increase as the injection of almost two million square feet of
office supply to these submarkets is expected to boost business traveller demand for
luxury and upscale hotels. Such establishments include the Dusit Thani Laguna
Singapore – the first golf-related hotel in Singapore. Moreover, various mid- and

© Euromonitor Interna onal 2020 Page 1 of 2

upscale hotels are shifting outside the Core Central Region (CCR), with higher room Competitive Landscape
counts.
Company Shares of Luxury Hotels
Robot butlers to attract tech-savvy younger consumers seeking added % Share (NBO) - Retail Value RSP - 2018
value
Marina Bay Sands Pte Ltd 27.5%
A significant number of new hotel openings were witnessed towards the end of the
review period. These included Sofitel Singapore City Centre, Courtyard Marriot at Accor SA 16.3%
Novena, Andaz Singapore and InterContinental Singapore Robertson Quay. As these AccorHotels Group 12.0%
new hotels seek to gain a foothold in Singapore, they are expected to invest in
marketing to create awareness while also launching new services. Players are likely to Meritus Hotels & Resorts 7.8%
increase their presence on social media platforms in order to reach increasingly Shangri-La International... 6.4%
connected consumers.
Ritz-Carlton Hotel Co LL... 6.3%

Robot butlers to attract tech-savvy younger consumers seeking added Starwood Hotels & Resort... 4.6%
value InterContinental Hotels ... 4.3%

While competition is expected to intensify in coming years, it is unlikely to be too Mandarin Oriental Singap... 3.5%
disruptive. Room rates from luxury hotels are unlikely to drop significantly, with Hilton Worldwide Holding... 2.6%
operators unwilling to damage their brands’ status. Smart hotels and new technology,
Four Seasons Hotels Ltd 2.5%
such as robot butlers, could help attract younger consumers who are more engaged
with new technology, while modern and efficient business services will be important Grand Hyatt Singapore 2.0%
in attracting MICE tourists.
Luxury Singapore Holding... 1.5%
Capella Hotels & Resorts 1.4%
Kempinski AG 1.1%
Six Senses Hotels Resort... 0.2%

Brand Shares of Luxury Hotels

% Share (LBN) - Retail Value RSP - 2018

Marina Bay Sands 27.5%

Swissotel The Stamford 11.6%
Fairmont 8.1%
Ritz-Carlton, Millenia S... 6.3%
Mandarin Orchard Singapo... 5.2%
Shangri-La Hotel Singapo... 4.6%
InterContinental Singapo... 4.3%
Swissotel Merchant Court 3.5%
Mandarin Oriental 3.5%
Sofitel Singapore 3.1%
Marina Mandarin Singapor... 2.7%
St Regis Singapore 2.6%
Conrad Centennial Singap... 2.6%
Four Seasons 2.5%
Andaz Singapore 2.0%
W Hotel 2.0%
Shangri-La Rasa Sentosa 1.8%
JW Marriott 1.5%
Capella 1.4%
Raffles 1.1%
Others 2.1%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2020 Page 2 of 2