Boom Year For Hotels In Singapore

Source : The Straits Times, Dec 24, 2007

THE full rooms at the inns, from Geylang to Marina Bay, have been keeping hoteliers very busy - and jolly.

The year has been marked by the setting and breaking of record after record, and the numbers attest to their 'it has been the best year ever' chorus.

Strong tourism arrivals saw Singapore welcome its 10 millionth visitor on Saturday. Demand for rooms has been exceptionally high, with average occupancy in the high 80s percentage range throughout the year.

The shortage was so acute that travel agents had to put customers up in outlying areas such as Geylang because they could not get rooms downtown.

Three records have been set for average room rates. The highest, and most recent, was $219 in October.

The numbers for room revenues are even better. Four highs were set, surging above the last peak in 1995. October was an all-time record at $178.4 million.

The hotel industry's joy is palpable, given the doldrums not so long ago. The robust demand means hoteliers can raise rates without too much worry.

'Room rates have been undervalued for too long. The increase is way overdue,' said Ms Stella Gillera, Mandarin Oriental's director of sales and marketing.

Meanwhile, things could get even better, as the data for last month and this month have yet to be released, said hotel analyst Chee Hok Yean, executive vice-president of Jones Lang LaSalle Hotels.

She expects room rates to head up by another 15 per cent to 20 per cent, and room occupancy to remain between 85 per cent and 90 per cent next year.

Already, Pan Pacific Singapore and Royal Plaza on Scotts are increasing room rates by 20 per cent to 25 per cent, while Orchard Hotel's are going up by about 10 per cent.

Meanwhile, new hotels are opening. The latest is St Regis Singapore, which welcomed its first guest on Saturday. The luxury hotel is charging $680 a night for its lowest-tiered rooms, and $10,000 a night for its presidential suite.

The opening of St Regis and 10 new hotels - adding some 1,700 rooms next year - should bring some slight relief to the room crunch, said Ms Caroline Leong, the Singapore Tourism Board's director of travel services and hospitality business.

Given the boom in the sector and with more hotels opening, competition for labour will be tighter. Hotels are keen to ensure staff loyalty, which translates into better pay and perks.

Hotels have yet to announce year-end bonuses, but indications are that it will be a fat cheque for many just before Chinese New Year.

Mandarin Oriental's Ms Gillera said: 'Our staff should be very very happy.'


Opening soon

Park Hotel Clarke Quay: 355 rooms
The Crowne Plaza Changi Airport Hotel: 307 rooms
Capella Singapore: 193 rooms
NTUC Palawan Beach Resort: 200 rooms
Movenpick Treasure Resort: 118 rooms
Ascott Singapore@Raffles 152 rooms
Quincy Hotel: 108 rooms
Hotel at Carpenter Street: 42 rooms
Hotel at Jalan Kubor: 70 rooms
Hotel at Chin Swee Road: 133 rooms