Tuesday, September 26, 2006
[RealEdge] BT : Mohd Sultan hotel site up for sale
| Published September 26, 2006  | |||||
| Mohd Sultan hotel site up for sale Another site at Bencoolen Street expected to go on sale next week
By ARTHUR SIM
THE hotel industry could be in for a shake-up, with one site launched for sale by public tender in Mohamed Sultan Road yesterday and another at Bencoolen Street expected to go on sale next week.
Off the shopping belt and relatively small, both sites are likely to be for mid-tier hotels. And in Singapore, these have generally been operated by independent, local operators. Mid-tier hotels are pitched between the four-star and budget sectors. And recently, international chains have been growing this segment aggressively in Asia. InterContinental Hotels Group (Asia Pacific) aims its Express by Holiday Inn chain at this market. And already it has plans to operate four hotels here. A spokesman said: 'The Express by Holiday Inn brand and concept is ideal for Singapore given the lack of branded hotels in the mid-tier convenience segment.'
Sources also say the Accor Group, which owns the Novotel brand, is looking to partner a developer for the Bencoolen Street site. The importance of having a 'branded' mid-tier hotel is echoed by David Ling, managing director of hospitality consultancy HVS International. One of the benefits of being part of an international brand is that it can share the group's 'marketing capabilities' 'Holiday Inn has brand equity. It will be featured in all the travel sales offices all over the world,' Mr Ling said. Mr Ling also points out that there is a new breed of 'price-sensitive' young executive and middle-managers who want something 'fuss-free' yet also 'a bit trendy'. In terms of branded mid-tier hotels, Singapore is a little behind. Express by Holiday Inn is already in Hong Kong and will soon open in Shanghai. Accor Group's equivalent, Ibis, is also in Hong Kong and China. Explaining why these establishments have been slower to take off here, Mr Ling said they have specific requirements for their rooms. 'Some of these hotel management companies have to be brought onboard at the time the hotel is being designed,' he explained. Tom Racette who is in charged of Accor Group's corporate communications, based in Bangkok, reveals that for Ibis, 'the design is fixed' - which means that a 16 sq m room is the same in Paris as in Tianjin. There may also be only one restaurant, and staff members are multi-tasking. And in a sense, so is the guest. 'After hours, if a guest orders room service, he will have to collect it himself,' said Mr Racette. Whether such 'limited-service hotels' will take off here will depend on the economy. Saying that the brand Accor chooses to launch in a country depends on the how developed the market is, Mr Racette said Ibis is meant for a city with a 'domestic market'. Still, HVS's Mr Ling believes there will be demand for mid-tier hotels here. Citing statistics that show that inbound travel from India and China could grow between 15-25 per cent a year, and that these travellers are willing to spend only 'about $100 per room', he said: 'It's easy to see that there could be a shortage.' | |||||
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