Business Times - 27 Mar 2009
Something special
Amid the current climate and in an already tight hotel market, any project coming onstream has a tougher job than usual to achieve decent occupancy. AUDREY PHOON checks out three new properties to see if their unique concepts and competitive pricing give them a fighting chance
Blazing the all-inclusive trail
Quincy
22 Mount Elizabeth
Tel: 6738-5888
www.quincy.com.sg
IN the current market, perhaps all that a hotel needs to cut itself a slice of the tight customer pie is a single tool: an all-in-one pricing system. That's the way Far East Organization sees it, and that is the company's business approach for Quincy, its latest hotel project.
The main selling point of the Orchard boutique hotel, which officially opened on Wednesday, is that it is Singapore's first all-inclusive hotel. And what that means is that for one price (the introductory rate is currently $208++), you get everything from three meals a day and a one-way limousine transfer service from the airport to evening cocktails, Wi-Fi and free access to a well-stocked mini bar. That's on top of the 400-threadcount sheets, feather-topped beds, 42-inch screens, and Molton Brown toiletries that are standard in every room.
Pretty unbelievable services
Considering the astronomical price of some hotel rooms these days (even as rates have dropped in view of the economic downturn) and the lack of value some of them provide, what you get at Quincy is pretty unbelievable. But there's 'no secret to it', says Chia Boon Kuah, executive director of Far East's hospitality business.
He explains that the hotel is able to keep costs down because it shares its back-of-house operations with the neighbouring Elizabeth Hotel, which is also owned by Far East. The company could have used the space to merely expand Elizabeth Hotel, adds Mr Chia, but it decided against it as 'that wouldn't have added any lifestyle options to the area'. 'There's a growing awareness of boutique products and yet, no such product like Quincy as far as supply is concerned,' he says.
Indeed, the new hotel - headed by hotel manager Franck Hardy, formerly of St Regis - is one of the grooviest in Orchard. Designed by architecture firm Ong & Ong, it houses 108 rooms (all the same size but in different configurations) behind a distinctive dark glass-and-steel facade that's emblazoned with the hotel's name in a white funky font. On the 12th floor, a cantilevered pool flanked by Dedon daybeds sits alongside a state-of-the-art gym while in the LED-lit lifts, LCD screens display quirky messages from the staff. And all common toilets in the hotel are unisex.
Everything is aimed at creating a 'modern, cool, surprising' experience, says Mr Hardy, adding: 'We want to surprise you upon check-in until when you check out.'
Travellers know a good deal when they see one, which is why the hotel averaged 76 per cent occupancy last month, with 100 per cent of its beds taken up going into its second week.
Marching to tune of guests' lifestyle
Citadines Singapore Mount Sophia
8 Wilkie Road
#01-26 Wilkie Edge
Tel: 6593-8188
www.citadines.com
THERE'S a silver lining to the economic downturn for major hospitality players who hold the reins to brands of different tiers. One such player is the Ascott Group, for whom the current climate has 'brought opportunities' for it to launch more residences under its Citadines line.
Citadines is Ascott's lowest-tier brand (the group has other serviced residences under the Ascott and Somerset labels) and it caters to 'independent and savvy travellers who look for stylish and spacious accommodation that also offer good value and flexibility', says Gerald Lee, chief executive officer of Ascott Hospitality for The Ascott Group Ltd.
This translates to comfortably appointed apartments that have been designed to double as home offices at the group's newest Singapore project, Citadines Singapore Mount Sophia. Each unit is well-thought-out and equipped with various creature comforts: even the studios (there are also one and two-bedroom units) are fitted with LCD screens and entertainment systems that slide smartly across the room so you can watch TV either in bed or while lounging on the living room sofa (or, more accurately, the sofa bed - just in case you have a guest bunking in for the night).
Flexible services
Rates start from a very reasonable $188 a night (with a minimum stay of seven nights), which is one reason why the residence has averaged a healthy 70 per cent occupancy rate since its opening. That's a figure some hotels reported even in better times.
Another key reason, according to Ascott, is the fact that the property's rates are based on what services guests require, which allows them to tailor their stays to meet their budgets and lifestyles.
Explains Mr Lee: 'What really sets Citadines Singapore Mount Sophia apart is its concept of flexible services. Guests can pick from a menu of services according to their lifestyles and pay only for what they need, so we cater to guests' needs without over-providing.' This could mean choosing to have housekeeping services or breakfast only on certain days, or requesting anything from a baby-sitter to in-room high-speed Internet access.
Of course, it doesn't all boil down to the numbers when it comes to drawing customers. Many of Citadines' guests are on mid to long-term stays, so the residence also organises activities such as golf and dance clinics so that they can settle into their new environment more quickly and comfortably.
'We also understand how some guests who have relocated to Singapore may miss their favourite furniture or paintings back home, so we're fine with them bringing these into their apartments on the property so they can feel truly at home,' adds Mr Lee.
The strength of the brand in the current climate is all the more obvious when you look at Citadines' growth: there are more than 50 Citadines residences around the world, and that number will almost double within the next couple of years.
Provided the brand continues to be well-received here, Singapore could be seeing a lot more of it soon too. 'If there is potential, we will open more Citadines here to offer travellers more choices,' says Mr Lee.
Rolling out the red carpet - all the way
Capella Singapore
1 The Knolls
Sentosa Island
Tel: 6377-8888
www.capellasingapore.com
EVEN as many hoteliers are reining in the luxuries and counting their dollars, one new project is rolling out the Rolls-Royces for its guests in a bid to stay competitive in the market.
Like its surreal landscape of manors, villas and lush rainforest, Capella Singapore - which will open on Monday - seems to be operating on a different plane altogether. But this, according to its general manager Michael Luible, is exactly what the hotel's target audience - independently wealthy individuals and business leaders such as CEOs and entrepreneurs - is looking for.
'The Capella guest is someone who knows what he wants and is used to luxury,' he says, adding that the hotel's client segment, in particular, is likely to choose 'understated luxury over more ostentatious offerings in the current economic climate'.
It is those preferences that the 111-room Capella seeks to fulfil. Developed at the cost of $400 million, the property aims to raise the bar in hospitality excellence both on the island and beyond with its 'architecture and design, luxury of space, unparalleled level of personalised services, and the opportunity for guests to experience exactly what they desire', pronounces Mr Luible.
Certainly, it's of the right pedigree: the project was designed by London's Pritzker Prize-winning architect Lord Norman Foster, with interiors by Jakarta-based Jaya Ibrahim, one of the world's top interior designers. New Yorker Elizabeth Weiner is the resort's art consultant while Honolulu firm Belt Collins International is responsible for its 30-acre landscape.
Luxury of space
Those sprawling premises are also being capitalised on by the hotel to differentiate itself from other luxury properties. 'Capella Singapore is the only resort-style hotel in Singapore that can afford such a luxury of space,' says Mr Luible, adding that the hotel's rooms, which start from 77 square metres, are some of the most spacious anywhere.
With so many big names behind it and room rates ranging from $660 to $7,500 per night, however, guests are bound to expect much more than large rooms and pretty views from their big picture windows. So Capella is going even further to provide its privileged guests with an ultra-luxurious experience, beginning from the moment they make a booking.
'Once guests confirm their reservations at Capella Singapore, they will gain access to a personal assistant, who will contact you before you arrive to help customise your stay,' says Mr Luible. This, he adds, should come in especially useful for business travellers as the assistant can arrange everything beforehand, from the use of one of the hotel's conference venues to reserving the best seats at one of Singapore's top restaurants.
Leisure travellers who wish to explore the city, meanwhile, won't have to trundle around in the likes of ungainly Ducktours vehicles - the resort has a chauffeured Rolls-Royce Phantom just for that purpose.
So far, the hotel has received 'a healthy number of advance bookings' boosted by the fact that its 'opening period coincides with several important holidays in Capella Singapore's key markets', says Mr Luible.
Still, it remains to be seen if all this is something that travellers will continue to fork out for in the coming months. Capella, however, is convinced that it is heading in the right direction. 'Hotels are increasingly moving towards providing differentiated products to emerge from the competition. For Capella Singapore, our key differentiation is to create experiences for the guests that will not be able to be replicated at other hotels.
'As we build momentum with our sales and marketing operations and as we commence operations, we anticipate a strong interest,' Mr Luible concludes.
Designer hotels the next big thing
Hotelier Ted Fang wants to create a new breed of hotels to target independent-minded travellers, reports MELISSA LWEE
THE next big thing in the hotel industry is something which will be coined 'designer hotels', or so believes hotelier Ted Fang. And that's exactly what he plans to do next.
The Singaporean entrepreneur made his mark in the hotel industry when he acquired the master franchise of Day's Inn hotels in China (including Greater China) in 2003. With 58 hotels already in the chain, the Day's Inn brand is already the fastest growing three and four star hotel chain in China.
Now, though, he wants to go upscale, so Mr Fang - who runs the company Frontier Group with his brothers Harry and David Tan - is looking to create a new breed of hotels to target a growing breed of independent-minded travellers.
'Our idea of a designer hotel is a cross between a boutique and a luxury hotel,' says Mr Fang. 'Unlike a typical boutique hotel with about 50 rooms, we're aiming for at least 100 rooms with designer fittings created by international designers.
'But although it is designer, it won't be a six-star super luxurious offering. Instead our target market really would be a hip business traveller who doesn't want to live somewhere too staid and wants something that is comfortable yet fashionable.
'Imagine a W Hotel but less pricey and more functional and you pretty much get the picture.'
This new brand of hotels marks the company's first move to create a completely new brand separate from the already established name of Day's Inn.
He adds that the brand will be created by the brothers as an expansion to their hotel management business by buying over properties to gain more control over the hotels.
Through Tera Capital - an investment management company started and run by Mr Fang, the brothers are also looking to lease or purchase existing properties/projects in China.
Previous Day's Inn projects were franchise/ma nagement deals between Frontier and developers/owners in China. Frontier does not own any of the hotels outright, a situation Mr Fang says will change.
'In a short span of four years, from one Day's Inn hotel in China there are now 58,' says Mr Fang. 'Having done well, we think that now is the right time to take that step into actual ownership of hotels.'
Especially as he believes the hospitality market is on an upward trend.
He says: 'The hospitality market will continue to grow very rapidly and you will see a boom within the next five years in China's consumer market.
'As China becomes less reliant on export-oriented businesses, the domestic market and middle class will grow and expand very quickly in the coming years. And we are positioning ourselves to benefit directly from this by being the dominant player in our markets. We still have a very long road of growth ahead of us.'
Although the company has been looking into ownership for awhile, ironically it was the economic crisis that pushed them over the edge.
Muses Mr Fang: 'Previously, land and property prices were just too expensive. It didn't make economic sense to buy. Especially with the room rates of the Day's Inn (around US$50) and Day's Hotels (around US$90) so affordable, the numbers simply didn't add up.
'Now, with prices of property so much lower, our calculations show that it now makes economic sense to buy. In fact, with prices so attractive, I'm going to be bullish and say if we don't buy now, then when?'
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