Steep Rates Likely For F1 Trackside Hotel Rooms

Source : The Business Times, September 21, 2007

Companies seeking to entertain guests may have to pay top dollar for packages over race period

Hot circuit: Suites at Swissotel the Stamford are believed to be already fully booked with a price tag hovering around $3,500 per night

Corporations preparing to entertain their guests at trackside hotels during the Singapore Formula One Grand Prix in September next year may have to dig deep into their pockets.

Though most hotels have not publicised their rates yet, indications are that guests may be charged several times the normal tariff when F1 fever is in full swing. Also, some hotels may not agree to let out rooms just for race night, but could sell packages for several nights.

Companies in a hurry to book rooms for their guests and clients have already started negotiating with the hotels and some have been quoted tentative rates.

One hotel that usually charges $900 a night for a suite tentatively quoted a package of more than $18,000 for the period leading up to the race.

This works out to a daily rate of around $4,000 a night.

Trackside hotels will pay a levy of 30 per cent to the Ministry of Trade and Industry for the five-day period between Sept 24 and Sept 28 next year to offset some of the expenses involved in staging the event. While the levy contributes to raising the rates somewhat, the period also coincides with the drivers' practice sessions, qualification races and the main event itself - all of which are eagerly watched by racing aficionados. This also enables hotels to sell packages for the entire period for which the F1 circus will be in town.

While the hotels involved seem hesitant to pin down concrete prices, BT was tipped that the suites at one of the trackside hotels, Swissotel the Stamford, are already fully booked with a price tag hovering around $3,500 per night.

One source trying to book rooms for his company said that he had been quoted a tentative rate of around $1,300 a night at The Pan Pacific Singapore. The hotel refused to confirm this. Cheryl Ng, public relations manager for the Pan Pacific, said: 'Based on the market forces of variable demand and supply, certain room rates have been finalised and extended to potential guests. There are many wait-listed enquiries regarding rooms during Formula One and we are in the midst of responding to interested parties.'

She added that the price floor and ceiling will not be apparent until the hotel has completed its entire pricing strategy.

Ritz-Carlton Millenia general manage Allan Federer told BT that similar rates would be offered to individuals and corporations, and differentials would arise only on the basis of room types and the view of the track during the F1 period. The official room rates would be released on the Ritz-Carlton website around the end of the month. At this point, the Ritz-Carlton has committed about 85 per cent of its guest rooms, with bookings largely stemming from both local and international companies.

'The F1 is a terrific way to entertain your top customers,' enthused Mr Federer, adding that the hotel began to confirm bookings from its wait-list about a month ago.

The Oriental director of communications Ruth Soh said that no official bookings have been made although the hotel has also been maintaining a waiting list for interested clients, consisting of both F1 enthusiasts and corporations. Various packages will be available in time to come, with prices to be determined by a confluence of factors such as room size, a view of the track as well as special amenities.

Other trackside hotels include The Fullerton, Marina Mandarin, Raffles Hotel, Conrad Centennial, Carlton Hotel and Peninsula-Excelsior.

Unsurprisingly, even non-trackside hotels - which will pay a levy of 20 per cent during the lead-up to the race - say that the response so far has been heartening. According to Thierry Douin, area manager and general manager for Shangri-La Hotel Singapore, there have been many inquiries from various race teams as well as travel agencies.

One factor that will decidedly influence the prices of hotel rooms is the time of the race. The world governing body for motorsports, Federation Internationale de l'Automobile (FIA), is expected to confirm soon whether - as expected - Singapore will conduct a night race. An affirmative response would be significant as it will mark the first night race in F1 history.