[SINGAPORE] The picture for Singapore’s hotel sector in the second quarter was not pretty. However, the sector’s performance in July showed improvement from the year-ago period.
In Q2 2025, the Republic’s hotels posted an average room rate (ARR) of S$263.83, down 1.1 per cent from the year-ago period’s S$266.89, according to Singapore Tourism Board (STB) data.
Average occupancy rate for hotels here slipped from 78.2 per cent in Q2 2024 to 77.8 per cent in the second quarter. As such, revenue per available room (RevPAR) fell 1.7 per cent to S$205.15 in Q2 2025, from S$208.77 in Q2 2024.
On the supply front, there were 5.9 million available room nights in Q2 2025, up 2.4 per cent from the year-ago quarter.
Meanwhile, on the demand side, observers noted that the US-tariff-related uncertainty may have led to delayed or cancelled travel plans and muted the willingness of business and leisure travellers to spend. Furthermore, the strong Singapore dollar did not help.
Unsurprisingly, listed trusts which are major owners of hotels here, such as CDL Hospitality Trusts and Far East Hospitality Trust, posted weaker financial performance – both trusts declared substantially lower distribution per stapled security for the first half of 2025 compared with H1 2024.
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However, STB’s data showed ARR, average occupancy rate and RevPAR of Singapore’s hotels rose year on year (yoy) in July 2025, with RevPAR at S$250.78, up 3.8 per cent yoy.
Strong showing
Nonetheless, even as the hotel sector faces uncertainties, integrated resort Marina Bay Sands (MBS), which fronts Marina Bay, is powering ahead.
For the quarter ended June, MBS’ owner New York-listed Las Vegas Sands (LVS) reported that MBS’ ARR for Q2 2025 grew to US$888 from US$797 in Q2 2024, up 11.4 per cent yoy.
In Q2 2025, MBS’ occupancy was 95 per cent, versus 95.3 per cent in the year-ago quarter.
Thus, MBS’ Q2 RevPAR climbed 11.2 per cent yoy to US$844.
MBS is outperforming the luxury tier of Singapore hotels. According to STB data, for the months of April to June, the ARR of the luxury tier of hotels ranged from S$630.64 to S$648.11 while occupancy rate was between 76.25 per cent and 78.99 per cent.
Perhaps, MBS’ strong performance is due to its scale and unique offering.
Today, MBS has 775 suites and 1,069 rooms. In each of the last four years, MBS employed over 10,000 full-time employees.
The integrated resort’s (IR) retail offering – The Shoppes at MBS – has a sizeable 620,513 sq ft of gross lettable area and hosts numerous flagship stores of major brands.
MBS is central to the meetings, incentives, conventions, and exhibitions (Mice) business in Singapore. There are over 300,000 sq ft of exhibition halls at Sands Convention and Exhibition Centre. Also, MBS has 21 ballrooms of varying sizes, including the largest, the Sands Grand Ballroom, which can accommodate up to 8,000 guests.
Add to all of the above, centrally located MBS boasts great dining spots, the Republic’s largest nightclub Marquee, a casino, a skypark with the world’s longest infinity pool, the ArtScience Museum and iconic architecture.
MBS shines not just in Singapore’s tourism scene but also relative to LVS’ Macau operations. According to its latest earnings presentation, LVS has five IRs with about 10,800 rooms and suites in Macau.
For Q2 2025, LVS reported that MBS’ adjusted property earnings before interest, tax, depreciation and amortisation (Ebitda) was US$768 million while that of Macau operations was US$566 million. Adjusted property Ebitda margin of MBS was 55.3 per cent versus 31.5 per cent for Macau operations.
Generating tailwinds
Given MBS’ success, LVS can confidently embark on major expansion plans for MBS, despite geopolitical tensions and US’ trade tariffs affecting the economic growth outlook globally and in Singapore.
In May, piling and foundation work commenced on MBS’ US$8 billion expansion project, with construction estimated to be completed in mid-2030.
The project will introduce a new 570-suite hotel, a 15,000-seat arena, additional Mice capacity and entertainment offerings including premium gaming areas.
Certainly, MBS has contributed enormously to Singapore’s economic growth and her appeal as an exciting global city.
MBS has created many jobs as well as sourcing and procurement opportunities for Singapore-based small and medium enterprises.
The IR’s expansion project can help to substantially strengthen the Republic’s appeal to luxury travellers, as a key Mice destination and as a leading venue for global entertainment events among others.
For sure, MBS’ success has generated some tailwinds for Singapore’s hospitality sector. And MBS’ expansion project could further benefit other hotels here.
Think of how MBS draws more leisure visitors here, with many of these visitors visiting the IR but staying elsewhere in Singapore.
Or how MBS hosts Mice events that attract international visitors who stay at accommodation islandwide.
Imagine too how the new 15,000-seat arena could host top live musical performances which draw visitors from the region, thus driving demand for the entire hotel sector here.
However, MBS is grabbing significant market share, be it in the high-end hotel, luxury retail, premier dining or nightlife segments, which can hurt other owners of properties targeting these segments. For example, sought-after luxury leisure travellers to Singapore might choose to stay at MBS even though its room rates are higher than numerous top-tier hotels because of its unique offerings. As such, they might resist swapping staying at the IR for what may be inferior substitutes.
With MBS being big and successful, and growing even bigger, expect it to hog talent in the Republic’s hospitality industry, which faces manpower challenges as many locals may shun working in an industry where hours can be long and working nights and on weekends could be required.
Given its scale, MBS is well-placed to offer employees better perks, training and career development opportunities relative to other smaller hotels here. Indeed, the IR is widely recognised as an employer of choice.
Ultimately, Singapore gains from MBS flourishing and growing.
However, while this giant brings some business to the wider hotel sector here, it also makes the going much tougher for other top-tier hotels in attracting demand for rooms, dining outlets and events.
