$30,000 Auction Bid For Hotel Room During F1 Race

Source : The Straits Times, Nov 28, 2007

Sum paid was for charity but is indicative of F1 race interest building up

THAT room with a view of the Formula One race cost a bomb - $30,000 - but it was for charity.

A professional paid $30,000 for a three-night stay at the Pan Pacific Hotel to catch the F1 race from Sept 26 to 28 next year.

The winning bid was made at an auction during a charity dinner at the Pan Pacific on Sunday.

Some 500 guests, including Senior Minister Goh Chok Tong and Mrs Goh, were at the dinner which raised $700,000 for the Assisi Hospice.

While the sum the bidder paid for the hotel's standard room was for a charity auction, it is indicative of the interest that has been building up over the F1 race.

Room rates have been the subject of much speculation since the announcement by the Government that trackside hotels will be slapped with a 30 per cent levy between Sept 24 and 28.

Trackside hotels include The Fullerton, Marina Mandarin, Conrad Centennial and Pan Pacific.

When contacted, several of these hotels said their F1 rates have not been finalised.

Among them, so far Pan Pacific has said its guests could fork out well over $1,000 a night for a regular room during the race period, with no guarantee of rooms overlooking the racetrack.

This is more than double Pan Pacific's highest average room price of $455 this year.

The hotel also said its suites, which offer a view of the track, will cost over $2,200 a night. For both rooms and suites during that period, guests must stay a minimum of five nights.

Industry observer Noel Hawkes, who was general manager of the now defunct Hotel Phoenix, said in other cities which host F1 races, room rates could rise to as much as triple the normal rate.

'I don't think its unreasonable. It's not that exorbitant by any means,' he told The Straits Times.

Several non-trackside hotels, which will pay a 20 per cent levy, have set their rates and secured bookings too.

From checks with about 20 hotels islandwide, guests may have to fork out between $300 and $1,200 per night.

The Grand Hyatt Singapore is nearly sold out, though it still has limited suites available at $3,000 per night. Regular rates for its suites are about 50 per cent less.

'We have not encountered resistance to our rates,' said Grand Hyatt Singapore manager John Beveridge.

'This buzz in the market has created an environment for strong demand for all categories of rooms. There is no question F1 fans want to be here,' he said.