Hotel market on track for further recovery, with modest growth expected in 2026
The 406-key InterContinental Singapore will be rebranded to a property under the The Luxury Collection by Marriott International in 2026
On Nov 26, Mandai Wildlife Group and Banyan Group held the grand opening of Mandai Rainforest Resort by Banyan Tree, the 338-key eco-resort nestled within the sprawling 126ha Mandai Wildlife Reserve. Celebrations to mark the occasion, which came six months after the resort’s soft opening in April, included the launch of the inaugural Rainforest Festival, a week-long event featuring wellness and creative workshops, nature and sustainability events, and live performances.
The resort, owned by Mandai Wildlife Group, is Banyan Group’s first property in Singapore and its 100th resort worldwide. Although originally scheduled to open in 2023, the Covid-19 pandemic delayed its opening until this year.
It is one of several notable hotels that debuted in 2025. In March, the second Raffles hotel in Singapore opened its doors at Sentosa. Comprising 62 villas, the Raffles Sentosa Resort & Spa is a partnership between hospitality group Accor, which owns the Raffles brand, and developer Royal Group. It is adjacent to Sofitel Singapore Sentosa Resort & Spa, which Royal Group also owns.
Mandai Rainforest Resort by Banyan Tree (Picture: Banyan Group)
Another Sentosa property, The Laurus, debuted in October. Part of Resorts World Sentosa, which is owned by Genting Singapore, the 183-suite hotel is the first property in Singapore under Marriott International’s The Luxury Collection.
That same month also saw the opening of Mett Hotel Singapore, a rebrand of the former Hotel Fort Canning Singapore. The 84-room boutique hotel is operated by Dubai-based Sunset Hospitality Group (SHG), which took over the space earlier this year from The Legends Fort Canning, an entity linked to former cinema operator Eng Wah Global.
Closer to Orchard, Mama Shelter Singapore started welcoming guests in September. The 115-room hotel on Killiney Road is the first Asian location for Mama Shelter, a brand under Ennismore, which is part of Accor. Singapore-based private equity firm Lucrum Capital owns the property.
The slate of openings comes as Singapore’s tourism activity continues to rebound. As of November, Singapore has received 15.55 million international visitors since the start of the year, up 2.7% y-o-y, according to statistics published by the Singapore Tourism Board (STB).
STB is projecting full-year arrivals to range from 17 million to 18.5 million. This is higher than the 16.53 million visitors received last year, though it remains below the 19 million visitor arrivals logged in 2019, before the pandemic. “Recovery remains slower than expected due to global economic uncertainty and the strong Singapore dollar, which tempers travel demand and Singapore’s appeal as a regional tourist destination,” says Cushman & Wakefield in its 2026 market outlook report.
Rising occupancy, but lower hotel RevPar
Occupancy rates for Singapore hotels have also yet to fully bounce back. STB data shows that average hotel occupancy stood at 82.19% between January and October. This is the highest occupancy level since the pandemic, but below the pre-Covid-19 level of 86.93% in 2019.
Despite the higher occupancy in 2025, hotel revenue per available room (RevPAR) declined slightly this year, dipping 1.4% y-o-y to $224.73 as of October. The fall is in tandem with a lower average room rate (ARR) of $273.41, down 1.6% y-o-y.
Performance of Singapore hotels
In a Dec 8 research report, DBS Group analysts Geraldine Wong and Derek Tan attribute the lower RevPAR to more room supply entering the market, prompting hoteliers to reduce room rates to support occupancies. This, in turn, caused average daily rates (ADR) to fall 4% y-o-y to $274 for the first ten months of the year, the report adds.
Nonetheless, ADR and RevPAR figures remain well above pre-Covid-19 levels, points out Sashi Rajan, executive vice president for hotel asset management Southeast Asia at JLL Hotels and Hospitality Group. RevPar, which stood at $191.96 in 2019, tumbled to $88.59 in 2020 as borders closed due to the pandemic. Since then, it has rebounded, surpassing 2019 levels to hit $219.42 in 2023.
Within the Singapore hotel landscape, luxury hotels continue to outperform. While softer RevPAR was seen across all hotel segments this year, the luxury segment experienced the narrowest decline of 0.8% y-o-y as of October. In comparison, the mid-tier, upscale and economy segments fell 1.8%, 2.6% and 5.7%, respectively.
Continued recovery
Going into 2026, hotel occupancy rates are expected to continue recovering on the back of increasing visitor arrivals, although this may still fall short of 2019 figures. “A modest increase in hotel supply may prolong the runway to achieve pre-pandemic occupancy levels,” says JLL’s Rajan.
Gus McConnell, associate director of research for Asia Pacific at CBRE, agrees. “While we will see further occupancy gains in 2026, it is more likely that they won’t return to pre-Covid levels in 2026 as Singapore awaits a full recovery in tourist arrivals,” he says. “However, what we have seen from both operators, as well as the STB, is that the focus is on keeping tourists and guests in Singapore for longer stays and increasing revenue per capita.”
In that vein, Rajan notes that hoteliers are anticipating improved revenue performance next year. JLL’s latest Apac Hotel Operators Sentiment Survey found that nearly nine out of 10 Singapore hotel operators expect revenue growth in 2026, led by rising occupancy. Most respondents are forecasting occupancy increases of up to 4 percentage points, adds Rajan. Meanwhile, ADR is expected to see marginal growth, broadly tracking inflation rates.
New hotel openings
More hotels are scheduled to launch over the next two years. In 2026, openings will include the 502-key Hotel Waterloo Singapore under Accor’s Handwritten Collection brand, located at Waterloo Street. Owned by Fragrance Group and Global Premium Hotels, the property will be the second Handwritten Collection property in the city, following Hotel Faber Park Singapore.
In Bugis, the InterContinental Singapore will be rebranded to Marriott’s The Luxury Collection in January. This follows the end of IHG Group’s management agreement with Frasers Hospitality, which owns the 406-room property on Middle Road.
Marriott will also debut Varel Singapore, a property under its Tribute Portfolio in 1Q2026. The 132-room hotel is a redevelopment of the former Selegie Centre on Selegie Road, which was purchased by Peak Tower Corp, a developer backed by Indonesia’s Anggasaputro family, through a collective sale for $120 million in 2019.
In Robertson Quay, the former Hotel Miramar Singapore will get a revamp, following its acquisition by investment firm Aravest and Wee Hur Holdings for $160 million last month. The 344-key property on Havelock Road ceased operations in October. Following upgrades, it will reopen next year as DoubleTree by Hilton Singapore Robertson Quay.
In the heartlands, Coliwoo is expected to open a resort chalet in Pasir Ris. The 350-key property occupies a site leased from the state, which Coliwoo secured through a Singapore Land Authority tender in June. It will be the co-living operator’s first chalet development.
Hotel supply is expected to get a bigger boost in 2027 from several new properties. These include the first 173-room NoMad hotel in Asia Pacific, located at the former Faber House on Orchard Road; the 470-room Moxy Singapore Clarke Quay, part of the CanningHill Piers integrated development; and the 165-room Casa Mett, located on the former Ming Arcade site on Cuscaden Road.
For DBS analysts Wong and Tan, the influx of new supply will prompt hoteliers to continue prioritising occupancy over rates. However, demand is expected to be supported by a growth in tourist arrivals, which the pair estimates at 3% to 4% for 2026. To that extent, DBS is projecting hotel RevPAR to grow around 2% next year.
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