âWith declining occupancy and revenue-per-available-room levels already apparent, the addition of new supply will likely result in a further softening of the market,â Alison Poore, senior consultant at CBRE Hotels-Southeast Asia, said in a statement.
Trade-dependent Singapore is facing its deepest ever recession amid the worst global economic slump since World War II. The countryâs gross domestic product declined an annualized 16.4 percent between October and December from the third quarter, its trade ministry said February 26.
The supply of four- and five-star hotel rooms in Kuala Lumpur will increase 10 percent to 20,400 by the end of 2012, the survey found. Bangkok will add 6,000 of those rooms, taking the total to 31,000, it said.
âThailandâs tourism tends to be resilient and increased supply of new hotels will tend to attract visitors, particularly when the current economic and political situations settle down,â CBRE Hotels said.
Ho Chi Minh City, which has fewer international hotels, will add 38 percent more four- and five-star rooms by the end of 2012, taking the total to 7,000, the survey found. Hanoi will add 3,000 rooms, boosting supply by 75 percent to 7,000, it said.
While Singapore risks adding to a glut of luxury hotel rooms as the islandâs economy slows, its strategic outlook will âhold strongâ over the longer term, CBRE Hotels said.
âThe ongoing success of branding and destination marketing initiatives combined with excellent infrastructure and a steady stream of attractions will ensure Singapore can respond quickly when the economy shows signs of recovery,â Poore said.
Source: Bloomberg