Category: Hotels

Feb 28 2010

Copthorne Orchid to go ahead with condo plans

Tenants had heard it before: The Copthorne Orchid Hotel would be torn down for a condominium.

So there was a sense of deja vu when they learnt from reading The Straits Times last Monday that the 440-room hotel in Dunearn Road would go.

In 2005, City Developments Ltd (CDL) had said it planned to turn the hotel’s site into a condominium. But that did not happen.

CDL owns hotelier Millennium & Copthorne (M&C), which operates the Copthorne Orchid Hotel.

But its latest announcement seems to be for real. A CDL spokesman told The Sunday Times it wants to launch the condominium project as early as this July.

The property developer has not decided on a firm date to put the 150 units of the project on sale as it ‘had just obtained provisional permission to redevelop’.

Depending on how well the condominium sells and existing tenancy obligations, the building may be torn down only next year or later.

M&C held back its plans in 2005 ‘as there was a projected shortage of hotel rooms’, its spokesman said.

But its recent announcement was not good news to its tenants – one of which has been leasing space in the hotel for 35 years.

Madam Anne Lee, 52, owner of Anne Salon, was upset that the hotel withheld such important information as she renewed her lease just three months ago.

‘They must tell us so we can start looking for another landlord,’ said Madam Lee, who has been running her salon there since 1975.

Nice Express, which operates its Singapore-Kuala Lumpur express bus service from the hotel, was also not informed about the plans.

Mr Charles Lawrence, 56, operations and sales supervisor at Nice’s Singapore office, said: ‘I do not know whether to move or stay.’

This comes at a bad time for Nice as it spent $100,000 last year to renovate its office at the hotel.

When asked why tenants were not informed, an M&C spokesman said: ‘We have not sent out any notices as there is no firm date yet.

‘The terms of the tenancy agreement contain a three-month notice clause. We have sufficient time on hand to serve proper and timely notice to all our tenants.’

Source: Sunday Times, 28 Feb 2010

Feb 25 2010

Wyndham puts more eggs in hotel basket

Segment will make up a third of group Ebitda in 5-10 years, from a fifth now

Wyndham Worldwide Corp projects that its hotel unit will be a larger part of its business in the next five to 10 years, as it seeks to grow in China, India and a host of other global hotspots.

Wyndham projects that hotels would make up a third of its earnings before interest, taxes, depreciation and amortisation as early as 2015, chief executive Stephen Holmes said on Tuesday at the Reuters Travel and Leisure Summit.

Currently, hotels make up 21 per cent of Ebitda.

‘Brands are not as prolific outside the US as they are inside the US, so there’s tremendous opportunity for growth,’ Mr Holmes said.

Wyndham is the No 2 hotel company in the world as measured by number of rooms, according to Smith Travel Research. The company also has a vacation exchange and rentals business as well as a timeshare unit.

Wyndham said in 2008 that it would shrink its timeshare unit, cutting 4,000 jobs in the process. The segment accounted for roughly half of the company’s revenue in 2009. This year, the timeshare segment will provide a smaller percentage of the revenue, Mr Holmes said.

Growth in the lodging segment could come through adding more hotels or a new brand to its portfolio. Wyndham said in recent quarterly calls that it was looking for brands to acquire.

The number of new hotels in the United States is expected to tick up this year, but that growth is expected to be muted compared to earlier years. There is also a dearth of hotel rooms in areas that are starting to see travel demand grow.

Mr Holmes said last year that Chinese tourism officials told him there would 200 million additional travellers entering the leisure market.

‘Two hundred million – they do not have enough hotel rooms to service that population growth.’

India presents an array of challenges, but Mr Holmes see that country as holding tremendous potential for the company.

‘The infrastructure in India still has a ways to go. that is the biggest challenge to that market,’ he said. ‘We’re active in that market and we hope to see growth there.’

Like many hotel operators, Wyndham does not own any of its properties. It franchises and manages hotels owned by others.

But many properties, including a handful run by Wyndham, have gone into foreclosure in the past year. Mr Holmes said that the seizure of the credit markets was a source of concern for him.

The number of hotels changing hands last year fell to a 10-year low as buyers and sellers haggled over their worth. When a hotel changes hands, there is an opportunity for a company such as Wyndham to change the brand on the property.

‘Clearly, the decrease in transaction volume . . . is (a) dampener of growth for us,’ Mr Holmes said.

Investors have bet heavily on Wyndham’s shares since last March. The stock has risen nearly seven-fold since then, outpacing the S&P 500 which is up 60 per cent.

Some of that rise is attributable to the company’s decision to shrink its timeshare unit, said FBR Capital Markets analyst Patrick Scholes who rates the stock an ‘outperform’.

The CEO also said that Wyndham’s share price could run higher, given that its valuation remained below its peers.

‘We still have a tremendous amount of running room,’ Mr Holmes said. ‘We’re gaining momentum.’

Source: Business Times, 25 Feb 2010

Feb 20 2010

M&C to convert Copthorne Orchid Hotel into condos

HOTELIER Millennium & Copthorne (M&C), a unit of Singapore’s City Developments, says it is planning a project to convert the Copthorne Orchid Hotel Singapore into condominiums.

‘This is expected to generate cash and profit from an alternative use of an asset and save an estimated £10 million (S$22 million) of maintenance expenditure required to retain the property in its current use,’ the UK-based group said yesterday, in announcing its 2009 results.

It reported that trading had improved towards the end of 2009 and into 2010 as it reported full-year pretax profit at the top end of expectations.

M&C, which operates 120 hotels in 19 countries, said pretax profit fell 20 per cent to £81.9 million. Forecasts had ranged between £68 million and £81 million, with the consensus at £77 million, according to a Reuters Estimates poll of six analysts.

Revenue per available room (RevPAR), a key industry measure, dropped 6.2 per cent to £53.62 but the rate of decline slowed in the third and fourth quarters. In the fourth quarter, RevPAR increased in London, compared with the previous year, while the rate of decline slowed in New York and Singapore.

‘We were anticipating stronger demand towards the end of the year and the actual results for the fourth quarter have exceeded our expectations,’ said chairman Kwek Leng Beng. The improvement has continued into the current year, with group RevPAR up 3.5 per cent in the first five weeks. He said, however, it was too early to predict the trading performance for 2010. ‘We are encouraged by the signs of stability in some of our markets, while conditions remain challenging in others.’

On Tuesday, InterContinental Hotels, the world’s biggest hotelier, warned trading will stay tough until business travellers return in greater numbers, putting pressure on its shares after 2009 profit fell 34 per cent. US rivals expect bookings to improve, with Sheraton owner Starwood Hotels & Resorts looking for flat to 5 per cent RevPAR growth in 2010 and Marriott seeing RevPAR up 2 per cent to down 2 per cent. M&C shares closed on Thursday at 376.5 pence, valuing the business at £1.17 billion.

Source: Business Times, 20 Feb 2010

Feb 18 2010

Morgan Stanley may hand over hotels

Morgan Stanley may hand over to creditors its US$2.4 billion investment in a chain of Japanese hotels when the debt becomes due in April, The Wall Street Journal said yesterday, citing people familiar with the matter.

Morgan Stanley acquired the chain of 13 hotels from All Nippon Airways in 2007, in what was then the biggest hotel transaction in Asia. Since then, property prices worldwide have dropped sharply.

However, two of the main lenders in the purchase, Citigroup and Shinsei Bank want Morgan Stanley to put more equity into the property, for more security against declining prices, the paper said. So far, Morgan Stanley has been reluctant to do that, the paper said. Officials for Citigroup and Shinsei declined to comment. No one was available for comment at Morgan Stanley.

Another lender, GIC – an investment arm of Singapore’s government, is interested in taking over the hotels from Morgan Stanley and is currently in discussions with the other lenders, the paper said, citing one person. An official for GIC declined to comment.

Source: Business Times, 18 Feb 2010

Feb 17 2010

Orchard Road hotels and retailers say IR will bring in more business for them

Over the Lunar New Year holidays, Singapore’s first casino and Universal Studios theme park at Resorts World Sentosa garnered all the attention.

But some are wondering if the focus on roulette tables and roller coaster rides will cause the mainland’s central shopping belt along Orchard Road to lose its glitter.

Singapore’s first casino and Universal Studios theme park opened over the weekend creating a buzz, not just here, but in the region as well.

With Singaporeans and tourists expected to throng the attractions – the question is – what will happen to the country’s premier shopping belt, Orchard Road?

For one, hotels there said they are not perturbed by the competition.

Katherine Wong, GM, Mandarin Orchard Singapore, said: “It is an anticipated competition where it’s the IR or new hotels coming into the market. We monitored our occupancy very closely. It could be a friendly threat for all, but I do not see any significant ups and downs.”

Hotels said it’s unlikely Orchard Road will be overshadowed by developments in Sentosa, a point echoed by retailers.

Jimmy Fong, CEO, AFOR – EpiCentre, said: “Resorts World Sentosa will bring in more crowds because more tourists will be in Singapore. Not everyone will head to the casino, where it’s more entertainment. Our place here is more for shopping.”

And Orchard Road, after the recent revamp at its many shopping malls, is still pulling in the crowds.

In fact, 313@Somerset saw some 80,000 shoppers during the Lunar New Year holidays with retailers saying business doubled.

The mall is also linking up with Orchard Central in two to three years’ time, all part of plans to enhance the shopping experience.

While the situation for now seems okay for Orchard Road hotels and businesses, it remains to be seen how it’ll be like when the second integrated resort opens in Singapore.

Ruprecht Schmitz, general manager, Orchard Hotel Singapore, said: “If you go to the resort in Sentosa, you may not want to stay only in Sentosa and if you go to Marina Bay, may not only want to stay in Marina Bay. There are many other things to do in Singapore and you may also have clients who want to go to these resorts but don’t want to stay there.”

Orchard Hotel said the influx of tourists to Singapore as a result of the integrated resorts should boost their weekend occupancy as well.

Source: Channel News Asia, 17 Feb 2010

Feb 12 2010

Hotel room rates down 17% last year: study

THE average hotel room rate (ARR) in Singapore dived 17 per cent year on year to $297 in 2009, according to a study by a corporate travel services firm.

UK-based Hogg Robinson Group’s 2009 Hotel Survey also shows Hong Kong’s ARR sank 18 per cent, as corporate travel was slashed amid the global recession.

Key Asian destinations were hit hard. But Middle Eastern destinations were bolstered by a strong fourth quarter, which led to an overall rise in ARR for 2009 as a whole.

Abu Dhabi (up 17 per cent), Riyadh (11 per cent), Oman (33.7 per cent) and Qatar (31.1 per cent) registered ARR growth due to a limited supply of rooms and revamps of existing hotels.

Worldwide, ARR dipped 3-4 per cent last year.

The five-star sector – especially in the Asia-Pacific region – proved reasonably resilient with a 3.5 per cent decline, which suggests upmarket hoteliers opted for lower occupancy levels, as opposed to slashing prices.

But budget hotels faced stiff competition from three and four-star hotels, which cut their rates amid the slump in travel demand.

Margaret Bowler, HRG’s director of global hotel relations, said: ‘The patterns in this hotel survey suggest the industry has some way to go before rates stabilise in 2010. While the indications are that rates will remain flat in most markets, there are signs of increasing occupancy.’

In fact, according to HRG, Hong Kong was the only one of six major cities – the other five being London, New York, Paris, Frankfurt and Amsterdam – that did not post a growth in ARR for Q4 2009.

‘Corporations should continue to look to renegotiate rates and consolidate hotel programmes,’ said Ms Bowler.

Source: Business Times, 12 Feb 2010

Feb 11 2010

Ritz-Carlton to shut Las Vegas property on poor demand

The Ritz-Carlton Hotel Co will close its five-diamond property in Las Vegas in May, after the hotel struggled with a slide in demand and revenue.

‘It’s nothing the hotel did. It’s a simple lack of business and a decline in the tourism industry,’ said Ritz-Carlton spokeswoman Vivian Deuschl.

The owners of the 348-room property, Village Hospitality LLC, an arm of Deutsche Bank, will stop funding the Ritz-Carlton Lake Las Vegas day-to-day operations on May 2.

‘That was the owner’s decision and we reluctantly agreed to go along with it,’ Ms Deuschl said.

Luxury properties have been hit hard in the past year and a half. Corporate travel and business from associations account for the bulk revenue of these hotels, but companies and groups have cut back on travel spending in the past year.

Village Hospitality, a subsidiary of Deutsche Bank’s German American Capital Corp, acquired the hotel in a non-judicial foreclosure sale in February 2009.

‘The unprecedented economic downturn has had a significant impact on the hotel’s operations,’ said Deutsche Bank spokesman Scott Helfman.

‘As a result, Village Hospitality LLC concluded that continuing to fund operations was no longer economically viable and consequently decided to close the hotel effective May 2, 2010.’

Ritz-Carlton is a division of Marriott International.

The hotel opened seven years ago and has played host to an array of celebrities including Elizabeth Taylor, Celine Dion and the late pop icon Michael Jackson.

The Ritz-Carlton Lake Las Vegas property employs some 350 people, Ms Deuschl said, some of whom may be relocated to other Ritz-Carlton properties or other Las Vegas hotels.

Located 27 kilometres from the Las Vegas Strip, the hotel boasts retail boutiques, a wedding chapel and gondola rides, according to the hotel’s website.

It received a ‘five diamond’ rating from the American Automobile Association for 2010.

Last year, revenue for US luxury hotels fell nearly 17 per cent, outpacing the 14 per cent drop in the overall industry, according to an analysis by PricewaterhouseCoopers LLC.

Revenue per available room (RevPAR), a fiscal measure of health in the industry, plummeted about 24 per cent, compared with a 16.4 per cent drop for the industry overall.

Luxury hotels have also suffered from the backlash from the so-called ‘AIG effect’, referring to the uproar caused by American International Group’s decision to fly top brokers and executives to a resort shortly after receiving a bailout check from the US government.

‘The whole demonisation of luxury meetings and companies’ pulling back on having their high-end meetings in luxury hotels – this has had a tremendous impact on Las Vegas,’ Ms Deuschl said. ‘I can’t think of another destination that has had to defend itself more against comments from politicians.’

She did not comment specifically on the hotel’s occupancy level, but said it was lower than the company would have liked.

Source: Business Times, 11 Feb 2010

Feb 10 2010

Hotels badly hit

NUMBERS for the hotel industry for the year also took a plunge, with overall room revenue falling 28.3 per cent to S$1.51 billion.

This is the result of falls in two hotel indices – overall average occupancy rate and overall average room rate.

Occupancy rates stood at an average of 76 per cent, a drop of 4.6 percentage points compared with the same period a year ago.

The drop was felt sharply when it came to room rates, which fell 22.3 per cent to S$191.

Santa United International Holdings, which owns six mid-tier hotels here, said that revenue dropped 7 per cent in 2009 compared with 2008.

Similarly, Rendezvous Hotel reported a loss in revenue and occupancy due to the recession.

‘As a result, there was intense competition among hotels for the shrinking pie,’ said general manager Kellvin Ong. ‘Price comparison was also rampant, with consumers… trying to stretch their dollar.’

Competition was made even tougher with the introduction of an additional 2,740 rooms to the total hotel room inventory last year. There are 41,000 hotel rooms on the market now, and the figure will rise further this year with the integrated resorts.

When asked if there were fears of an oversupply, Singapore Tourism Board chief Aw Kah Peng said the ‘demand and supply balance has to adjust itself in lieu of the new inventory’.

‘We do expect to see some adjustments there,’ she said. ‘We believe much of it is in anticipation of future growth, because these are long-term decisions taken by hotel investors.’

Source: Straits Times, 10 Feb 2010

Jan 30 2010

In with the old

IT is ghosts of the past that worry hoteliers most when they convert old buildings into new lodgings – and not the supernatural kind. ‘With old buildings, you never know what you are getting into. You find faults you didn’t see before, once you start work on them,’ says Loh Lik Peng, who owns Hotel 1929 and New Majestic Hotel in the Chinatown area, both of which occupy pre-war structures. On top of that, he adds, engineering is costly and ‘a pain’, because such buildings have no grid; as a result, there can be no replication in design as every room has different dimensions.

Then there are restrictions on the extent to which the original structures may be modified. Take Wangz Hotel, for instance: the month-old hotel, which occupies a 20-year-old building at Outram Road, is located near an MRT tunnel, so it had to work around a structural load constraint. Says its director, Wang Chang Yuin: ‘Our structural engineer had to perform meticulous calculations on both internal and external loading to ensure that we didn’t put additional load on the building. The existing facade tiles and internal walls were removed, and lightweight materials, such as the external perforated aluminium cladding, were used instead.’

Still, such hurdles have not stunted the growth of a new boutique-hotel culture – crafted out of mature buildings – here. Over the past few months, several such lodgings have sprung up and more will open within the first half of this year, including a new venture by Mr Loh.

The magnetic appeal of these projects, which are generally more costly than constructing something from scratch, lies in the fact that they are rich in history, local flavour and charm, says the hotelier. ‘There’s something about old buildings that really captures my interest. There are layers of history imbued in them, and it’s like you’re peeling them back when you do your renovations and incorporating them with a new interpretation. I would never look at an empty plot of land and say that,’ he says.

Adds James Ting, general manager of Nostalgia Hotel, a six-month-old business that takes up two heritage shophouses in Tiong Bahru: ‘These buildings possess rich historical value. In converting them into new premises, we can preserve a part of Singapore’s history, perhaps for the younger generation to appreciate in future. Additionally, through the hotel’s architecture and retelling of its history, guests can get an insight into Singapore’s story and have a unique experience that is different from the monotony of chain hotels.’

BT Weekend takes a look at four new-old hotels that form part of the burgeoning boutique accommodation culture here.

Wanderlust
2 Dickson Road
To open by mid-year

DICKSON Road is a pretty offbeat location for a trendy hotel, what with the motor workshops, Chinese-style ‘beer garden’ and coffee shops that line it. But then, owner and lawyer-turned-hotelier Loh Lik Peng has never been one to follow convention. ‘Very often, a project is not about the location,’ he says. ‘It’s about falling in love with the building; looking at it and seeing a little gem there. It’s not about being near an MRT station; I never look at projects that way.’

His latest hotel, then, takes up a charming, tiled-front building that was constructed in the 1920s. ‘This was the Hong Wen School until the Buddhist Welfare Association took over in the 1970s, when Hong Wen moved to bigger premises,’ says Mr Loh. ‘Now I guess the association has outgrown it too – they’ve moved to Toa Payoh.’

To be called Wanderlust, the 29-room, four-storey establishment will be ’something a little more sophisticated and fun’ than the other hotels in the neighbourhood, and it’s being designed by cutting-edge creative agencies Phunk Studio, Asylum and fFurious, along with architects DP Architects. Each company is responsible for one floor.

On the hotel’s positioning, Mr Loh says: ‘There are very few nice, interesting hotels in Little India, nothing like what we’re doing. They’re all the budget sort, lacking in imagination and not leveraging on the uniqueness of the area. This is a really authentic part of Singapore, so I thought it’d be nice to do something special.’

No surprise then, that Wanderlust aims to bat creativity out of the park with visual treats like Asylum-designed bespoke wallpaper printed with modern images of Little India; neon lighting; and heavy play on light and shadow on the various floors. The rooms, to be priced from around $200 to $250 a night, promise to be ‘almost like a playground designed as furniture’: there’s a ‘monster room’, a ‘tree room’ and one with a spaceship concept, and all fittings are being custom-made because of the complex shapes needed.

Says Mr Loh: ‘We’re using fibreglass, concrete, steel, plywood … everything. It’s going to be the first hotel of this sort that I’m doing, as in working with this level of complexity.’

Additionally, the building will house a cantilevered pool on the second storey, as well as a small ground-floor bar and a casual French restaurant helmed by Anthony Yeoh of the Funky Chefs, who does ‘good, solid flavours’, proclaims Mr Loh.

Wanderlust’s site, says the hotelier, reminds him of Keong Saik, where he opened his first hotel, Hotel 1929, in 2003. ‘It was all hotels with hourly rates and brothels back then. In many ways, this area reminds me of that; it’s really local and I like that,’ he explains. As he sees it, going in early – wedged among those motor workshops and coffee shops – is a good thing. ‘You can’t help other people coming in and diluting the flavour,’ says Mr Loh, ‘but for a while, at least, you can capture the magic of an area.’

The Club 28 Ann Siang Road To open in April THOSE not content with just dinner and drinks at Harry’s will be glad to know that they can soon do bed and breakfast there as well: come April, the group behind the Harry’s chain of restaurant-bars will open a hotel under the newly-established Harry’s Hospitality umbrella.

To be called The Club, the 22-room establishment (rack rate: $400 a night) will also house function rooms plus a couple of F&B outlets that include a tapas restaurant, an outdoor terrace and a rooftop bar – necessary revenue-generating elements in such a small project, says Mohan Mulani, chief executive officer of Harry’s Holdings. ‘With a boutique hotel of this size, F&B is quite a key component in the business plan. You can’t just operate it on room sales alone,’ he says, adding that The Club plans to draw ‘a good 60 per cent’ of its revenue from that channel.

The project is a natural extension of his core business, he adds. ‘While it is a bit of a deviation from opening bars, it really isn’t that large of a deviation. And it gives the company a lot more depth also, plus more offerings for the customer.’

Bed and breakfast aside, what those customers will get is the opportunity to experience a bit of Singapore’s history too – The Club will be located in a historic shophouse that, most recently, used to be home to advertising agency Batey. ‘It’s where the Singapore Girl was born,’ says Mr Mulani, referring to the well-known Singapore Airlines campaigns that Batey produced. The area also used to house many remittance centres for the early Chinese immigrants, a fact that the architect Colin Seah of Ministry of Design, which worked on the hotel, played on.

The entrance, for example, will showcase murals that give a sense of what the place was in the past; there will also be features that hint of this history in the rooms, where the ‘modern day nomad and the nomad of yesterday cross paths for a moment’. The other key inspiration in The Club’s design is Singapore’s colonial past, which in one instance takes shape in the form of a larger-than-life Raffles statue standing with his head in the clouds.

Artists who have been involved in other Harry’s projects have also been tapped to contribute to the hotel – artworks from Romanian Valeriu Sepi (who did a mural in Harry’s Boat Quay outlet) and Singaporean Wyn-Lyn Tan, to name a couple, will decorate The Club.

The hotel’s site was selected for two reasons, says Mr Mulani. One, he has a ’soft spot’ for the area as he owned a wine bar there for more than a decade, which he had to give up three years ago when the building it was in was bought over. And two, ‘I hang around here a lot and I think Ann Siang Road is really heaving and happening again’. Even taking into account competition from the other boutique hotels in the Chinatown area, he is upbeat about the success of The Club. ‘With the product that we’re creating, I don’t think we have a very uphill task, in my humble opinion,’ he says.

Wangz Hotel
231 Outram Road
Tel 6595-1388
www.wangzhotel.com

AS the saying goes, third time lucky – and so’s the case with the 20-year-old building that Wangz Hotel is located in. Originally called Tarng Chern Building, the unique barrel-shaped structure used to house offices and a jewellery shop. Some years later, it was renamed Hope Centre and became home to a student hostel and several non-profit organisations. But it is with its third and latest reincarnation that the building has really been revitalised with a fresh new look and a more permanent purpose.

The 41-room, six-storey hotel is owned by the Wang family, who have been involved in property development (including serviced offices) since the 1990s but had not previously done a hotel before Wangz. ‘The idea of opening a boutique hotel had been at the back of our minds, but we hadn’t found a suitable property,’ says director Wang Chang Yuin.

When the family was approached about the Outram Road building, however, they took to it immediately. ‘We were drawn to the strategic location of the building,’ says Mr Wang. ‘It is close to the CBD and Orchard Road, and we like its prominent location. We also like the charm of the art deco buildings in the area.’ In addition, he adds, the hotel is the tallest building in the immediate vicinity and offers great views of the city skyline, particularly from its rooftop.

The decision to develop the site and create ‘a modern hotel that would stand out from the nearby art deco buildings’ was made in 2007; some two years and $8 million later, Wangz Hotel has emerged from its chrysalis of scaffolding. And what a transformation it has undergone: the original dull tiled facade is now all gleaming perforated aluminium, teased by local architects CPG Consultants into a three-way curve to give the building a ‘bulging’ effect and a futuristic look, and its interiors are a cocoon for culture. The spacious rooms – priced from about $228 a night, and stuffed with creature comforts such as pillow-top mattresses, iPod docking stations, goosedown duvets and Molton Brown bath amenities – feature artworks by artists such as Hijran Seyidov, a Dubai resident who counts royalty among his clients; Singaporean Anthony Tan, who is known for his nature-themed abstracts; and contemporary South Indian artist P Gnana, whose works are in the Singapore Art Museum collection.

Apart from studying these aesthetic treats, guests can also have drinks at Halo, the rooftop lounge, dine at in-house restaurant Nectar, or work out in the fully-equipped gym.

Already, the hotel is reporting a 55 to 80 per cent occupancy rate, with most guests coming from Europe, the United States and Australia.

‘There is a growing market for tourists who specifically go to boutique hotels because of the cosy environment and personalised service they offer,’ says Mr Wang. ‘Because of this, and given the usually small number of rooms each boutique hotel has, we think demand for such hotels will remain high.’

Nostalgia Hotel
77 Tiong Bahru Road
Tel 6808-1818
www.hotelnostalgia.com.sg

WITH the warm lighting that spills out of its wooden shutters in the evenings and the comfortable, lived-in buzz that radiates from it, one can easily imagine No 77 Tiong Bahru Road to be a home straight out of the pre-war era. Step inside the perfectly preserved shophouse, however, and a reception area will reveal the truth: the more-than-half-a-century-old building actually forms part of a hotel.

That homely feel is exactly what owner Cornerstone Link, a mining company based in Indonesia, was looking for when it bought the property from developer Lion Properties Group in September, says the hotel’s general manager, James Ting.

He adds that Nostalgia is positioned to feed the growing demand for such boutique accommodation.

‘Travellers are becoming more savvy and most are looking for a unique experience,’ he explains. ‘They no longer crave the monotony of luxury chain hotels but are looking for a different environment with character and charm.’

The appropriately-named Nostalgia Hotel, then, has 50 rooms (some of which are housed in the heritage shophouse and others in a new extension built over what used to be a bird singing corner) and features design and decor inspired both by Singapore’s colonial years as well as the romantic history of the neighbourhood – Tiong Bahru in the past was known as an area where the well-heeled kept their mistresses. It’s ‘old-world charm with a dash of modernism’, as Mr Ting puts it, which translates to lush fabrics, furniture in warm colours, gilded mirrors and chandeliers, set against a backdrop of specially commissioned contemporary artwork by a local artist and other modern touches.

The rooms, which are priced from about $215 per night, are equipped with cutting-edge conveniences like LCD TVs and iPod docking stations, as well as bath amenities by French designer Pascal Morabito or Chopard, depending on the category of room. Meanwhile, in the Balcony rooms, which are situated in the heritage bit of the hotel and overlook the junction of Tiong Bahru Road and Seng Poh Road, architects AMC Architects International have preserved the original louvered windows, wooden panels and wall artifacts of the original structure.

The new-old juxtaposition is intended to ‘reflect the existent community of Tiong Bahru’, a mature estate in a modern age, says Mr Ting. ‘We want to echo the cultural and historical values of the area and allow guests to experience the Singapore of yesteryear comfortably; as such, Nostalgia provides accommodation that reflects the essence of Singapore in a luxurious environment.’

Source: Business Times, 30 Jan 2010

Jan 29 2010

Wellness firm enters hotel business

WELLNESS provider Mary Chia is looking to move into the hotel business with the launch of a new integrated hotel and lifestyle centre.

The company has entered into a joint venture with businessman Lee Boon Leng, the son-in-law of executive chairman Mary Chia, to set up a firm called Hotel Culture.

It has paid $20 million for three properties on Mosque Street that will be converted into a combined hotel, lifestyle and wellness centre. There will also be a food and beverage business on the 21,399 sq ft site.

Mary Chia is slated to run the beauty, facial, spa and massage business, Mr Lee will be responsible for the food and beverage aspect, while a third party will be appointed to manage the hotel.

The 92-room integrated hotel, which is to emerge from the four-storey conservation shophouses, is expected to be completed by the third quarter of this year.

Mary Chia chief executive Wendy Ho said the property in the heart of the Chinatown heritage zone would charge between $150 and $180 per night and benefit from the tourist flow generated by the integrated resorts.

‘We are targeting people… who will enjoy all the spa, F&B and entertainment facilities combined with a boutique hotel stay,’ she added.

Ms Ho is bullish about her company’s investment, citing positive feedback from the surveys it has conducted.

The bulk of the $20 million bill for the property will be funded by $16 million worth of bank loans, with Mary Chia and Mr Lee extending another $3.5 million to Hotel Culture as shareholders’ loans.

The remaining $500,000 will come from the paid-up share capital of Mary Chia and Mr Lee’s stakes in the company.

Mary Chia paid $255,000 for its 51 per cent stake in Hotel Culture, while Mr Lee owns the remaining 245,000 shares. The loans extended are proportionate to their shareholdings.

Ms Ho said most of the firm’s investment would come from its initial public offering, which succeeded in raising $3.9 million last August.

‘We believe it is a worthwhile investment, and we will look into our costing,’ she said. The firm reported a net profit of $119,000 for the six months ended June last year.

Restaurant operator, Taste Paradise, which currently operates at two of the three units Hotel Culture is acquiring, has confirmed that it will be moving out.

Source: Straits Times, 29 Jan 2010

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