Tag Archives: Singapore Hotels

Holiday Inn Park View completes overhaul

Posted on 19 Nov 2009 | Comments Off on Holiday Inn Park View completes overhaul

The Holiday Inn Park View, which opened here in 1985, has been renamed Holiday Inn Singapore Orchard City Centre as part of a $25 million refurbishment exercise.

Its signage, reception area, guest rooms and food and beverage outlets have been overhauled. Despite the downturn, the decision was made to go ahead with renovating the 319-room hotel over a 15 month period. This was done in conjunction with InterContinental Hotels Group’s Holiday Inn global relaunch programme.

‘We’re long term players. For us to refurbish in slightly more difficult economic times actually makes greater sense. If you do it in good times, you essentially take rooms out of the inventory,’ said Aron Harilela, director of Hong-Kong based property developer The Harilela Group, which owns the Holiday Inn in Singapore as well as other properties in Asia, Europe and the Americas.

The group also owns three transit hotels here at Changi Airport, as well as a 20 per cent stake in Thomson Medical Centre.

Looking ahead, The Harilela Group is expanding its portfolio with the launch of two hotels in Tier 2 and 3 cities in China – the first of which will open in the second quarter of 2010 and the second in Q3 2011.

The two hotels, each costing US$15 million, will be funded by a mix of debt and equity. ‘We’re looking to do five hotels in China. There’s a big market for internationally branded, standardised products,’ said Dr Harilela, adding that land in Tier 1 cities tends to be priced exorbitantly.

Meanwhile, the Holiday Inn has out-performed the industry this year, according to general manager Shantha de Silva, with occupancy rates in the mid-80s, down from the low 90s in 2007-08.

Room rates this year have come down about 20 per cent compared to last year but remain in the low $200s.

‘We’ve been trading fairly robustly even, this year,’ said Mr de Silva. Business travellers make up 60-70 per cent of the clientele.

And Mr de Silva is confident that the hotel industry is likely to pick up soon.

Source : Business Times – 19 Nov 2009

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M&C to open Studio M hotel

Posted on 14 Nov 2009 | Comments Off on M&C to open Studio M hotel

MILLENNIUM & Copthorne Hotels (M&C) has added a new brand to its portfolio, Studio M, with the first hotel slated to open in Singapore in the second quarter of 2010.

Located at 3 Nanson Road in the Robertson Quay area, the 365-room Studio M hotel will fuse style and functionality by offering integrated technology and wireless connectivity, as well as other features such as an open-air tropical deck.

The project will cost $120 million, of which the land cost was $53 million. Construction is under way.

‘The concept of smart business travel is evolving rapidly. There is increasing demand from this largely untapped market segment that craves a distinctive experience, even as they demand functional services like wireless connectivity. Studio M aims to fill this gap,’ said M&C chairman Kwek Leng Beng. M&C is a subsidiary of City Developments Ltd.

And when Studio M is launched next year, Mr Kwek – who is also executive chairman of M&C’s parent company Hong Leong Group – reckoned that it will benefit from the two integrated resorts.

‘When they open, they will bring in new types of customers. You’re not taking away existing customers,’ he said.

The next stop for the Studio M brand is likely to be the Middle East. M&C is also looking at China, India and Vietnam. ‘We plan to take this new brand global,’ said Mr Kwek. ‘The question is always which will give me more stabilised earnings?’

M&C’s financial results for the nine months ended Sept 30 showed that revenue per available room (RevPAR) for its Singapore hotels fell 35.5 per cent year on year to £pounds;57.60 (S$133.32), on the back of a 9.2 percentage point drop in occupancy to 74.8 per cent. Room rates for 9M 2009 were 27.6 per cent lower at £pounds;77.

However, the decline in RevPAR has started to slow, as seen from a 31.2 per cent drop in Q3 2009, versus 44.5 per cent in Q2. Occupancy increased 0.7 percentage point for Q3. But room rates are still under pressure, declining 31.7 per cent in Q3.

‘As occupancy demands start to increase, this decline in rate will start to be addressed,’ M&C said in its interim statement.

Listed in London, M&C has more than 120 hotels worldwide under several brands.

Source : Business Times – 12 Nov 2009

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