Midscale and economy hotels outperform in Singapore

Somewhat surprisingly, midscale and economy hotels appear to be doing better than their higher-end peers in Singapore, a famously upscale and expensive city for hotels.

Highlighting the change in a new report, real estate and property management firm CBRE said the new data reverses a trend seen in previous quarters.

Occupancy rates for midscale hotels rose 2.8 percent in the first six months of 2015 to hit 83.8 percent and occupancy rates at economy hotels rose 1.2 percent to 82 percent. Conversely, occupancy rates among luxury hotels dropped 5.2 percent to 80.6 percent across the city-state.

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As economies across Asia Pacific struggle to gain their footing, the entire industry is struggling.

The average daily rate for the hotel sector as a whole in Singapore dropped 3.4 percent to just over S$251 ($178).

Singapore is facing a difficult time as its currency continues to appreciate against others in the region, making higher end hotels particularly inaccessible. At the same time, companies and governments are working to cut down budgets, which could benefit the mid-range sector.

And CBRE points out that the trend may not change any time soon as a steady supply of new rooms in the pipeline could put downward pressure on prices.