Wednesday, April 1, 2009

From Four-Star To Five After $80m Renovations

Source : The Business Times, March 31, 2009

PARK Hotel Group is sinking $80 million in the renovation of Park Hotel Orchard, which will reopen in the second quarter of 2010 as a five-star hotel.

Modernistic: The Park Hotel Orchard will close from tomorrow for renovations and will be rebranded as Grand Park Orchard

The four-star Park Hotel Orchard will close from tomorrow to facilitate the renovations and will be rebranded as Grand Park Orchard, the group's flagship hotel. Rates will start from $350.

The group will also be soft launching its 336-room Park Hotel Clarke Quay on May 1. Allen Law, director of Park Hotel Group, expects occupancy for the first month of operation to come in at 70 per cent, and to build up to the high 80s within three months.

Commenting on the performance of the group's hotels so far this year, Mr Law said: 'We do see a slight drop (in revenue per available room) compared to 2008, down 10-15 per cent. However, it is still a little above our 2007 level, which is healthy.'

In comparison, revpar for the group's hotels in 2008 was up 22-25 per cent year on year, he said.

When it reopens next year, the Grand Park Orchard will feature 309 rooms as well as a four-storey retail podium. The 83,000 square foot podium will house flagship stores of international brands.

The group's other properties include Park Hotel Hong Kong, Grand Park Otaru in Japan and Grand Park City Hall in Singapore.

Meanwhile, Capella Singapore, the luxury hotel on Sentosa Island, opened yesterday. The hotel - which comprises a presidential manor, 38 villas, 11 suites and 61 guest rooms - sees rates starting at $750 for guestrooms and suites and $1,800 for the villas.

Capella is offering various introductory packages, including a complimentary third night for every two nights' stay, valid through May 31.

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