[SINGAPORE] Hotels are shifting into high gear as Singapore races into the Formula 1 (F1) Grand Prix weekend, with occupancy and takings both trending up from last year.
As at mid-September, hotel occupancies for the full race week were higher than at the same point last year, said Jesper Palmqvist, regional vice-president, Asia-Pacific at hospitality research firm STR.
This year, 17 days before the race, occupancy for the three-day weekend hovered above 80 per cent, STR data showed. In 2024, the figure was closer to 70 per cent.
But the 2024 figure eventually rose by the actual time of the race weekend.
“Growth last year came late, which was unusual,” noted Palmqvist.
In 2024, flights between Singapore and other countries were still being restored. This meant a shift in source markets and shorter booking windows.
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This year has “offered slightly more stability”, said Palmqvist. “This is a more ‘normal’ year with linear demand growth over the last few months.”
In theory, achieving higher occupancy rates earlier could allow hotels to raise their rates, he added.
STR data showed that from 2008 to 2019, race weekend occupancy rates averaged 87.3 per cent, the average room rate (ARR) was S$513, and the revenue per available room (RevPAR) averaged S$448.
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Post-pandemic, from 2022 to 2024, occupancy was marginally lower – at 86.4 per cent – but rates were higher, with ARR of S$645 and RevPAR of S$557.
“This shows that while occupancy levels remain steady, pricing power has significantly increased in recent years, as established in a post-pandemic reality overall,” Palmqvist noted. But this could be due to a variety of factors, he noted, as Singapore’s hotel landscape has “changed drastically” in the last decade, with more rooms overall as well as new brands, new locations, renovated hotels and a shift in source-market mix.
“Our expectation is that we see similar occupancy and rate levels in 2025 as 2024, potentially a slight increase in rates.”
Firing on all cylinders
Hotels by the tracks have reported stronger performance this year.
Hilton saw “a clear uplift in both occupancy and demand around this year’s race weekend”, tracking ahead of the records set in 2024.
At Wyndham Singapore Hotel, revenue for the period is up about 15 per cent year on year, said general manager Jacqueline Ho. “The hotel reached almost full capacity by 30 days out, underscoring sustained demand.”
Guests have also been more focused on having a “premium experience”, with more opting for higher-tier rooms and packages, she added.
A night’s stay in a superior room at Wyndham starts at S$630; for a skyline suite, rates start at S$1,500 a night.
Track-view rooms at Pan Pacific Singapore and Parkroyal Collection Marina Bay “were booked out well in advance”, said a Pan Pacific Hotels Group (PPHG) spokesperson. Rates at these hotels range from S$1,200 to S$3,000 a night.
Demand is not confined to these two hotels with trackside views. “Compared with 2024, our hotels are performing better this year, with higher occupancies and room rates across the board.”
A few of the group’s hotels are fully booked out for the weekend. “While much of the inventory is already sold, we continue to see last-minute bookings in the lead-up to the event.”
Fairmont Singapore and Swissotel The Stamford are also seeing higher rates this year. Their rates start from around S$700 a night, and can go up to S$36,000 for hospitality suites. Both hotels became fully booked in the past week.
Said managing director William J Haandrikman: “Occupancy and room rates are higher than last year across both hotels, with hospitality suite bookings up by about 5 per cent year on year and stronger performance across our dining outlets and events.”
There has also been a rise in corporate bookings at the two hotels. “We have managed to secure more corporate clients for our suites compared with 2024, which reflects both strong team effort and healthy market demand,” noted Haandrikman.
Wyndham, too, has seen a similar trend. “We have more companies staying with us who are involved in motorsports,” said Ho.
Buckling up for the crowds
The F1 night race is traditionally a peak period for tourism in Singapore. According to the Singapore Tourism Board, the event has attracted more than 720,000 international visitors since it began in 2008, generating more than S$2.2 billion in incremental tourism receipts.
Palmqvist said that, from an ARR perspective, the event leads in its ability to boost rates.
This year, Wyndham’s F1 weekend rates are about three times that of non-race weekends.
Similarly, ARRs at Fairmont and Swissotel are more than thrice the rates on a typical October weekend.
Haandrikman noted that the top source countries for race-weekend guests continue to be Australia, the UK, the US and Singapore; guests from these countries together account for 80 per cent of stays.
But there has also been growing leisure demand across Asia, he added.
A key difference this year is that the F1 weekend overlaps with China’s Golden Week, which spans Oct 1 to Oct 8. “(This) amplified demand but also compressed the booking window, as two major events coincided,” Haandrikman pointed out.
Samer Elhajjar, senior lecturer of marketing at the National University of Singapore Business School, pointed out that traveller spending during F1 week is more than 30 per cent higher than in a normal week, going by data from card company Visa.
Hotels are putting the pedal to the metal to serve the F1 crowd.
Beyond the typical F1-themed drinks and dining, as well as operational adjustments for security and comfort, hotels are also curating special experiences.
Fairmont and Swissotel have converted standard rooms overlooking the track into private hospitality suites, “with beds removed, bathtubs turned into champagne ice buckets, and curated food and beverage programmes”.
PPHG has introduced experiences such as its “Pitstop Staycation” in partnership with Lego, where guests receive F1-related Lego sets and can enjoy family-friendly activities.
At Parkroyal Collection Marina Bay’s Portman’s Bar, Armin Flossdorf – best known for his F1-related art – is conducting live painting sessions from Thursday (Oct 2) to Sunday, with his paintings displayed around the hotel as well.
Meanwhile, Pan Pacific Orchard is positioning itself as a “wellness sanctuary in the city” with its night-race wellness stay package. Offered in partnership with skincare brand Elemis, it includes accommodation at its beach club pool-access lofts, as well as a skincare gift pack and Elemis-branded in-room amenities.
