RATES of $1,000 a night and higher have not deterred Formula 1 fans from snapping up trackside hotel rooms for the inaugural Singapore Grand Prix.
Hotels ranging from the glitzy Ritz-Carlton Millennia Singapore to the Peninsula-Excelsior Hotel are already fully booked for the Sept 26 to 28 race. This is despite significantly higher than normal room rates of over $1,000 per night for the Ritz (about a 100 per cent increase) and $300 for the Peninsula (about a 50 per cent increase).
Two other hotels - Swissotel The Stamford and Pan Pacific Singapore - anticipate a 100 per cent occupancy rate.
One reason for the higher rates is that the Government will be imposing a special hotel tax on total room revenue from Sept 24 to 28 - the week of the race.
The tax will range from 30 per cent - for the 11 trackside hotels - to 20 per cent for all other hotels.
Trackside hotels such as Marina Mandarin ($1,500 per night) and Fairmont Singapore ($1,830) are still entertaining bookings.
The Fullerton has yet to confirm rates, but will place those interested on a wait-list.
The high take-up rate is not confined to trackside hotels.
The Four Seasons, along Orchard Boulevard, also managed to sell out all of its rooms from Sept 20 to 28.
The race will be held on Sept 28. Qualifying sessions begin on Sept 27.
Tourists are expected to form a significant portion of the 100,000 fans expected for the grand prix, and they are expected to spend around $100 million on hotels, and at food and beverage outlets, nightspots and the like.
Corporate hospitality packages ranging from $3,500 to $7,500 per head have also been selling well. These were put on the market by race organisers Singapore GP in November.
A Singapore GP spokesman declined comment, but it is believed that suites in areas such as the pit area and exclusive Paddock Club are close to being sold out.
Source : Straits Times -21 Jan 2008
Showing posts with label Hotel. Show all posts
Showing posts with label Hotel. Show all posts
Tuesday, January 22, 2008
ALMOST LIKE HOME
Industry association proposes rule on stay of 7 nights or more be lifted
FOR 20 years, there has been a little-known rule governing service apartments: Guests have to stay seven nights or more.
ALMOST LIKE HOME: Facilities offered in service apartments, such as this Fraser Suites two-bedroom apartment outfitted with a kitchen to prepare meals, would ‘help bridge the gaps for medical and family tourism’. — BT FILE PHOTO
Now, with an eye on the current hotel room crunch, the Serviced Apartments Association proposes that this condition be lifted.
There are at least 3,500 service apartment units here, compared to more than 37,000 hotel rooms.
If the association gets the go-ahead, this will have an impact on the short-stay accommodation market. Association president Alfred Ong told The Straits Times it is high time the rule was lifted - a rule he said is unique to Singapore.
He added: ‘If Singapore wants to be a first-class city, then it should give customers the choice, whether it be service apartments, hotel rooms or budget accommodation.’
Although the association said it began preliminary discussions with the Singapore Tourism Board (STB) and the Urban Redevelopment Authority (URA) in 2006 and stepped them up last year, the two agencies said they have yet to receive a formal proposal to lift the rule.
Travel industry players said such a move will help ease the room crunch in Singapore where hotels have registered high average occupancy of more than 80 per cent.
This has led to higher room rates, which in turn have led to concerns over Singapore’s competitive edge in the mass tourism sweepstakes.
The latest American Express market forecast on hotels in the Asia-Pacific, released last week, predicts that corporate rates in Singapore will go up by some 29 per cent this year.
This is higher than its projections on Hong Kong at 17 per cent, Beijing at 21 per cent and Kuala Lumpur at 20 per cent.
This is despite the 8,850 rooms added last year and this year.
Mr Prashant Aggarwal, head of American Express Consulting for Japan, the Asia-Pacific and Australia, cited increased demand with higher visitor arrivals as part of the reasons driving its projection.
However, Plaza Royal on Scotts hotel general manager Patrick Fiat said the industry should not be too concerned about the rates hike.
He told The Straits Times: ‘For the past 10 years, hotel rates have been low. So, the current spike is just hotel rates catching up with rates elsewhere.’ He expects levelling out by next year.
However, he is opposed to allowing service apartments to accept shorter stays.
But the service apartment industry sees the proposed move as complementary rather than competitive.
Ms Tonya Khong, general manager of Fraser Suites and Fraser Place, said: ‘There may not be much impact on the industry’s occupancy if the minimum duration of stay requirement is lifted.
‘We foresee that this move can help bridge the gaps for medical and family tourism, as cooking and children-friendly facilities as well as spacious living space will mean a great deal to these visitors.’
Mr Ong said in other Asian cities, most service apartment guests are middle- to long-term guests. Only about 30 per cent are short-stay guests.
But he added that allowing shorter stays will mean more efficient use of service apartments, which always have some spare days between long-term guests.
Source : Straits Times - 21 Jan 2008
FOR 20 years, there has been a little-known rule governing service apartments: Guests have to stay seven nights or more.
ALMOST LIKE HOME: Facilities offered in service apartments, such as this Fraser Suites two-bedroom apartment outfitted with a kitchen to prepare meals, would ‘help bridge the gaps for medical and family tourism’. — BT FILE PHOTO
Now, with an eye on the current hotel room crunch, the Serviced Apartments Association proposes that this condition be lifted.
There are at least 3,500 service apartment units here, compared to more than 37,000 hotel rooms.
If the association gets the go-ahead, this will have an impact on the short-stay accommodation market. Association president Alfred Ong told The Straits Times it is high time the rule was lifted - a rule he said is unique to Singapore.
He added: ‘If Singapore wants to be a first-class city, then it should give customers the choice, whether it be service apartments, hotel rooms or budget accommodation.’
Although the association said it began preliminary discussions with the Singapore Tourism Board (STB) and the Urban Redevelopment Authority (URA) in 2006 and stepped them up last year, the two agencies said they have yet to receive a formal proposal to lift the rule.
Travel industry players said such a move will help ease the room crunch in Singapore where hotels have registered high average occupancy of more than 80 per cent.
This has led to higher room rates, which in turn have led to concerns over Singapore’s competitive edge in the mass tourism sweepstakes.
The latest American Express market forecast on hotels in the Asia-Pacific, released last week, predicts that corporate rates in Singapore will go up by some 29 per cent this year.
This is higher than its projections on Hong Kong at 17 per cent, Beijing at 21 per cent and Kuala Lumpur at 20 per cent.
This is despite the 8,850 rooms added last year and this year.
Mr Prashant Aggarwal, head of American Express Consulting for Japan, the Asia-Pacific and Australia, cited increased demand with higher visitor arrivals as part of the reasons driving its projection.
However, Plaza Royal on Scotts hotel general manager Patrick Fiat said the industry should not be too concerned about the rates hike.
He told The Straits Times: ‘For the past 10 years, hotel rates have been low. So, the current spike is just hotel rates catching up with rates elsewhere.’ He expects levelling out by next year.
However, he is opposed to allowing service apartments to accept shorter stays.
But the service apartment industry sees the proposed move as complementary rather than competitive.
Ms Tonya Khong, general manager of Fraser Suites and Fraser Place, said: ‘There may not be much impact on the industry’s occupancy if the minimum duration of stay requirement is lifted.
‘We foresee that this move can help bridge the gaps for medical and family tourism, as cooking and children-friendly facilities as well as spacious living space will mean a great deal to these visitors.’
Mr Ong said in other Asian cities, most service apartment guests are middle- to long-term guests. Only about 30 per cent are short-stay guests.
But he added that allowing shorter stays will mean more efficient use of service apartments, which always have some spare days between long-term guests.
Source : Straits Times - 21 Jan 2008
Hotel sales in Singapore topped US$376 million
Hotel sales in Singapore topped US$376 million last year, putting it in sixth position in transaction activity in Asia.
This is a 3.5 per cent growth from 2006.
According to Jones Lang LaSalle Hotels, Japan saw the highest activity last year with US$6.8 billion of deals done, a 63 per cent jump from the previous year.
Jones Lang attributed the lure of Japan to the low cost of debt.
It added that while economic growth rates may not be as strong as some parts of the world, Japanese hotels still offer a positive yield spread.
Hong Kong trailed a far second with US$850 million of sales transacted, followed by China with US$727 million. - CNA/ac
Source : Channel NewsAsia - 21 Jan 2008
This is a 3.5 per cent growth from 2006.
According to Jones Lang LaSalle Hotels, Japan saw the highest activity last year with US$6.8 billion of deals done, a 63 per cent jump from the previous year.
Jones Lang attributed the lure of Japan to the low cost of debt.
It added that while economic growth rates may not be as strong as some parts of the world, Japanese hotels still offer a positive yield spread.
Hong Kong trailed a far second with US$850 million of sales transacted, followed by China with US$727 million. - CNA/ac
Source : Channel NewsAsia - 21 Jan 2008
Hotel sales in Singapore topped US$376 million
Hotel sales in Singapore topped US$376 million last year, putting it in sixth position in transaction activity in Asia.
This is a 3.5 per cent growth from 2006.
According to Jones Lang LaSalle Hotels, Japan saw the highest activity last year with US$6.8 billion of deals done, a 63 per cent jump from the previous year.
Jones Lang attributed the lure of Japan to the low cost of debt.
It added that while economic growth rates may not be as strong as some parts of the world, Japanese hotels still offer a positive yield spread.
Hong Kong trailed a far second with US$850 million of sales transacted, followed by China with US$727 million. - CNA/ac
Source : Channel NewsAsia - 21 Jan 2008
This is a 3.5 per cent growth from 2006.
According to Jones Lang LaSalle Hotels, Japan saw the highest activity last year with US$6.8 billion of deals done, a 63 per cent jump from the previous year.
Jones Lang attributed the lure of Japan to the low cost of debt.
It added that while economic growth rates may not be as strong as some parts of the world, Japanese hotels still offer a positive yield spread.
Hong Kong trailed a far second with US$850 million of sales transacted, followed by China with US$727 million. - CNA/ac
Source : Channel NewsAsia - 21 Jan 2008
Saturday, November 10, 2007
Katong Hostel will be given a master lease on the flats on a 3+3-year tenancy.
THE Housing & Development Board (HDB) yesterday awarded the tender for the master lease of 120 three- and four-room vacated flats in Tiong Bahru to Katong Hostel at a tender price of $230,280 per month. The company was the highest of 15 bidders at the tender which closed on Oct 9.
Katong Hostel will be given a master lease on the flats on a 3+3-year tenancy. The flats were vacated under the Selective En bloc Redevelopment Scheme (Sers) and the tender to seek a master tenant was a pilot project by HDB to boost the supply of flats for rental housing.
‘This will put these flats to better use in the interim period, pending their redevelopment,’ HDB said. ‘HDB will assess the response to this pilot project before deciding whether to expand the scheme in future. If needed, HDB has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next three years.’
Source : Business Times - 8 Nov 2007
Katong Hostel will be given a master lease on the flats on a 3+3-year tenancy. The flats were vacated under the Selective En bloc Redevelopment Scheme (Sers) and the tender to seek a master tenant was a pilot project by HDB to boost the supply of flats for rental housing.
‘This will put these flats to better use in the interim period, pending their redevelopment,’ HDB said. ‘HDB will assess the response to this pilot project before deciding whether to expand the scheme in future. If needed, HDB has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next three years.’
Source : Business Times - 8 Nov 2007
Global hoteliers are riding a building boom in Asia, and using plush new hotels as giant advertisements to lure newly rich Chinese and Indians
Global hoteliers are riding a building boom in Asia, and using plush new hotels as giant advertisements to lure newly rich Chinese and Indians to their US and European properties.
Operators such as InterContinental Hotels Group and Hilton Hotels Corp are growing fast in an Asian market worth US$115 billion a year, spurred on by a regional travel craze.
But they also hope to lodge their brands in local minds. That’s because despite a reputation for cramming into cheap package tours, Chinese tourists spend an average US$3,786 on trips to the United States and US$5,253 in Europe.
The number of Chinese travelling to the US has jumped 44 per cent in four years to 320,000 last year, and Indian visitors increased nearly 60 per cent to 406,000, according to the Pacific Asia Travel Association.
InterContinental’s acting Asia head, Anthony South, said the chance to capture the outbound market was a motive in a deal to buy a controlling stake in the hotel management unit of Japan’s All Nippon Airways Co (ANA) last year.
ANA later sold its 13 hotels, jointly branded with InterContinental, to US investment bank Morgan Stanley.
‘Through good times and bad, the Japanese go to all corners of the globe and are very well-heeled,’ Mr South said. ‘The same applies to China, where the outbound market is growing off a small base very rapidly. If they identify with our brand at home, it’s good for our business.’
InterContinental, which like most hotel firms has eschewed ownership to only operate hotels, aims to add 130 new properties to its 190 in Asia over three years. And at its Holiday Inns outside China, the firm is starting to stock hard pillows popular with the Chinese and installing water boilers for instant noodles.
Asia’s hotel market is far from a sure bet, with the 1997 economic crisis and an outbreak of the Sars respiratory disease in 2003 each causing a 20 per cent drop in visitor arrivals. But the travel industry has a knack for bouncing back quickly so hotels are taking long-term views, focusing on the economic growth rates of around 10 per cent in India and China.
‘As the wealth in both countries increases, the first thing people want to do is travel,’ said Gerald Lawless, chief executive of Jumeirah, a hotel firm owned by the ruler of Dubai. Jumeirah aims to operate 60 hotels by 2011, with three or four each in India and China.
The company now runs 11 luxury hotels, including the sail-shaped Burj al-Arab in Dubai and the Jumeirah Essex House in New York. ‘The outbound market is vital for us,’ Mr Lawless said. ‘There’s been a surge in Chinese visitors at the Burj.’
China’s US$16 billion hotel market, growing at 15 per cent a year, is the main focus in Asia for most operators and investors.
The number of domestic trips per year has doubled since 2001, and domestic tourism is expected to rise to 8 per cent of gross domestic product within a decade, from 5.4 per cent in 2002.
And with the 2008 Olympic Games expected to put China on the world travel map, Hilton has clinched a deal to manage around 20 new hotels being built by Deutsche Bank’s property arm RREEF and private equity firm H&Q Asia Pacific.
Hilton, now with six hotels in China, has tied its loyalty programme to Air China and China Eastern Airlines to hook Chinese on its brand when they travel abroad.
India’s hotel market is even more lucrative, with US$300 room rates common because of a massive shortage. The country has only 110,000 hotel rooms, with internationally branded rooms making up less than 40,000 of the total - less than half on offer in tiny Singapore.
But the inflated prices could hurt the industry. Average room rates have risen 30 per cent in the last year. ‘Inflated room rates will have a severe negative effect on potential demand, especially in leisure destinations,’ said Manav Thadani, managing director of consultants HVS International.
Investors are keen to build more - Citigroup, for example, is building a luxury hotel in Bangalore with developer Nitesh Estates.
Around 100,000 rooms are forecast to enter the market over the next five years, but India’s creaking infrastructure could stall the plans. ‘Unless the airport situation is addressed and new ones opened, it’s going to be a barrier,’ said InterContinental’s Mr South. ‘Hotel development will be in a stop-start manner.’ - Reuters
Source : Business Times - 7 Nov 2007
Operators such as InterContinental Hotels Group and Hilton Hotels Corp are growing fast in an Asian market worth US$115 billion a year, spurred on by a regional travel craze.
But they also hope to lodge their brands in local minds. That’s because despite a reputation for cramming into cheap package tours, Chinese tourists spend an average US$3,786 on trips to the United States and US$5,253 in Europe.
The number of Chinese travelling to the US has jumped 44 per cent in four years to 320,000 last year, and Indian visitors increased nearly 60 per cent to 406,000, according to the Pacific Asia Travel Association.
InterContinental’s acting Asia head, Anthony South, said the chance to capture the outbound market was a motive in a deal to buy a controlling stake in the hotel management unit of Japan’s All Nippon Airways Co (ANA) last year.
ANA later sold its 13 hotels, jointly branded with InterContinental, to US investment bank Morgan Stanley.
‘Through good times and bad, the Japanese go to all corners of the globe and are very well-heeled,’ Mr South said. ‘The same applies to China, where the outbound market is growing off a small base very rapidly. If they identify with our brand at home, it’s good for our business.’
InterContinental, which like most hotel firms has eschewed ownership to only operate hotels, aims to add 130 new properties to its 190 in Asia over three years. And at its Holiday Inns outside China, the firm is starting to stock hard pillows popular with the Chinese and installing water boilers for instant noodles.
Asia’s hotel market is far from a sure bet, with the 1997 economic crisis and an outbreak of the Sars respiratory disease in 2003 each causing a 20 per cent drop in visitor arrivals. But the travel industry has a knack for bouncing back quickly so hotels are taking long-term views, focusing on the economic growth rates of around 10 per cent in India and China.
‘As the wealth in both countries increases, the first thing people want to do is travel,’ said Gerald Lawless, chief executive of Jumeirah, a hotel firm owned by the ruler of Dubai. Jumeirah aims to operate 60 hotels by 2011, with three or four each in India and China.
The company now runs 11 luxury hotels, including the sail-shaped Burj al-Arab in Dubai and the Jumeirah Essex House in New York. ‘The outbound market is vital for us,’ Mr Lawless said. ‘There’s been a surge in Chinese visitors at the Burj.’
China’s US$16 billion hotel market, growing at 15 per cent a year, is the main focus in Asia for most operators and investors.
The number of domestic trips per year has doubled since 2001, and domestic tourism is expected to rise to 8 per cent of gross domestic product within a decade, from 5.4 per cent in 2002.
And with the 2008 Olympic Games expected to put China on the world travel map, Hilton has clinched a deal to manage around 20 new hotels being built by Deutsche Bank’s property arm RREEF and private equity firm H&Q Asia Pacific.
Hilton, now with six hotels in China, has tied its loyalty programme to Air China and China Eastern Airlines to hook Chinese on its brand when they travel abroad.
India’s hotel market is even more lucrative, with US$300 room rates common because of a massive shortage. The country has only 110,000 hotel rooms, with internationally branded rooms making up less than 40,000 of the total - less than half on offer in tiny Singapore.
But the inflated prices could hurt the industry. Average room rates have risen 30 per cent in the last year. ‘Inflated room rates will have a severe negative effect on potential demand, especially in leisure destinations,’ said Manav Thadani, managing director of consultants HVS International.
Investors are keen to build more - Citigroup, for example, is building a luxury hotel in Bangalore with developer Nitesh Estates.
Around 100,000 rooms are forecast to enter the market over the next five years, but India’s creaking infrastructure could stall the plans. ‘Unless the airport situation is addressed and new ones opened, it’s going to be a barrier,’ said InterContinental’s Mr South. ‘Hotel development will be in a stop-start manner.’ - Reuters
Source : Business Times - 7 Nov 2007
Wednesday, October 24, 2007
HOTEL room rates in Singapore continue to set new highs
AS HOTEL room rates in Singapore continue to set new highs, the taxman’s upcoming formula tweaks — which will see hotels’ property tax bills jump by at least 33 per cent — will skim some of the cream off the cake for hoteliers.
The increase arises from a change to the formula used to calculate the annual value (AV) of hotels, which will kick in next year.
And analysts say that while the taxman’s move to keep up with the buoyant tourism and property sectors will certainly reduce hotel profit margins, the market itself won’t be thrown off beat.
Cushman and Wakefield’s managing director Donald Han pointed out that average room rates have gone up by some 20 to 30 per cent in the first 10 months, as demand continues to outstrip supply and major hotels see more than 90 per cent occupancy. Consequently, he said, “the taxman has to look into ways of making tax collection more transparent and equitable”.
Indeed, the tourism industry here is experiencing a helium boost, with the Government’s aggressive marketing, the inaugural Singapore Formula One race next year and the eventual opening of two Integrated Resorts.
Figures from the Singapore Tourism Board released yesterday showed a record 766,000 visitors last month — a 7.1-per-cent increase over the same period last year. Hotels generated $152.2 million in revenue, a record 7.4-per-cent increase, while the average room rate was put at $201 — a rise of about 5 per cent.
With another 10- to 15-per-cent increase in room rates expected over the next six months, the hike in hotel property tax is not unexpected — especially since the last change to the computation formula was in 1986.
Hotels will continue to be taxed at 10 per cent of AV. Currently, the AV is based on 15 per cent of gross room receipts in the preceding year.
This will go up to 20 per cent next year and to 25 per cent in 2009. In addition, the AV of hotels’ food and beverage (F&B) areas will be based on estimated current market rent instead of 5 per cent of gross F&B receipts.
“Where Government is concerned, there is no free lunch,” said Mr Han. “It has been promoting tourism and one of the immediate spillover benefits would be in the hotel sector, so the tax criteria has to reflect current market sentiments.”
But there are grouses. Said an industry insider: “The IRAS has not been able to clarify the market rent in relation to F&B outlets. Many hotels manage the restaurants themselves and there are also function and meeting rooms which may not be used frequently.”
Mr Han, too, noted that market rent “differs from one property to another and factors such as location (even within the hotel) can affect the rates.” The issue is compounded if a hotel decides to have its function room at an adjacent shopping centre, for instance.
Source : Today - 24 Oct 2007
The increase arises from a change to the formula used to calculate the annual value (AV) of hotels, which will kick in next year.
And analysts say that while the taxman’s move to keep up with the buoyant tourism and property sectors will certainly reduce hotel profit margins, the market itself won’t be thrown off beat.
Cushman and Wakefield’s managing director Donald Han pointed out that average room rates have gone up by some 20 to 30 per cent in the first 10 months, as demand continues to outstrip supply and major hotels see more than 90 per cent occupancy. Consequently, he said, “the taxman has to look into ways of making tax collection more transparent and equitable”.
Indeed, the tourism industry here is experiencing a helium boost, with the Government’s aggressive marketing, the inaugural Singapore Formula One race next year and the eventual opening of two Integrated Resorts.
Figures from the Singapore Tourism Board released yesterday showed a record 766,000 visitors last month — a 7.1-per-cent increase over the same period last year. Hotels generated $152.2 million in revenue, a record 7.4-per-cent increase, while the average room rate was put at $201 — a rise of about 5 per cent.
With another 10- to 15-per-cent increase in room rates expected over the next six months, the hike in hotel property tax is not unexpected — especially since the last change to the computation formula was in 1986.
Hotels will continue to be taxed at 10 per cent of AV. Currently, the AV is based on 15 per cent of gross room receipts in the preceding year.
This will go up to 20 per cent next year and to 25 per cent in 2009. In addition, the AV of hotels’ food and beverage (F&B) areas will be based on estimated current market rent instead of 5 per cent of gross F&B receipts.
“Where Government is concerned, there is no free lunch,” said Mr Han. “It has been promoting tourism and one of the immediate spillover benefits would be in the hotel sector, so the tax criteria has to reflect current market sentiments.”
But there are grouses. Said an industry insider: “The IRAS has not been able to clarify the market rent in relation to F&B outlets. Many hotels manage the restaurants themselves and there are also function and meeting rooms which may not be used frequently.”
Mr Han, too, noted that market rent “differs from one property to another and factors such as location (even within the hotel) can affect the rates.” The issue is compounded if a hotel decides to have its function room at an adjacent shopping centre, for instance.
Source : Today - 24 Oct 2007
THE Mandarin Oriental hotel here has enjoyed a significant increase in the number of international corporate and free and independent travellers FITs
THE Mandarin Oriental hotel here has enjoyed a significant increase in the number of international corporate and free and independent travellers (FITs) since it was upgraded and rebranded as a member of the worldwide Mandarin Oriental Hotel Group.
‘After the hotel was relaunched in 2005 we saw a two to three-fold increase in the number of business travellers in 2006, compared with 2004 and 2005,’ says Rajesh Jhingon, general manager of the Mandarin Oriental, Singapore.
‘Demand for rooms will continue to increase as the hotel is constantly upgrading its facilities and service.’
Guests have responded positively to the transformation of the hotel and the improved facilities, he said.
The hotel, previously The Oriental, Singapore, was renamed Mandarin Oriental, Singapore on Sept 25 to align it with the Mandarin Oriental Hotel Group, which is in the process of developing 17 new hotels worldwide.
The multi-million-dollar upgrade of the Singapore hotel - which included all rooms and suites, dining and meeting facilities, public areas and the fitness studio - is one of the most significant since the hotel opened in 1987.
The hotel was closed for refurbishment for three months from end-August 2004 until December 2004, when it reopened softly.
‘However, renovation works were still going on and we relaunched the hotel in May 2005,’ says Mr Jhingon. Upgrading of facilities continued after that, the latest being the renovation of the fitness studio, which was completed in June this year.
There will be further renovations in 2008 to the hotel’s rooms, including new furniture and the latest audio visual facilities in every room.
Source : Business Times - 23 Oct 2007
‘After the hotel was relaunched in 2005 we saw a two to three-fold increase in the number of business travellers in 2006, compared with 2004 and 2005,’ says Rajesh Jhingon, general manager of the Mandarin Oriental, Singapore.
‘Demand for rooms will continue to increase as the hotel is constantly upgrading its facilities and service.’
Guests have responded positively to the transformation of the hotel and the improved facilities, he said.
The hotel, previously The Oriental, Singapore, was renamed Mandarin Oriental, Singapore on Sept 25 to align it with the Mandarin Oriental Hotel Group, which is in the process of developing 17 new hotels worldwide.
The multi-million-dollar upgrade of the Singapore hotel - which included all rooms and suites, dining and meeting facilities, public areas and the fitness studio - is one of the most significant since the hotel opened in 1987.
The hotel was closed for refurbishment for three months from end-August 2004 until December 2004, when it reopened softly.
‘However, renovation works were still going on and we relaunched the hotel in May 2005,’ says Mr Jhingon. Upgrading of facilities continued after that, the latest being the renovation of the fitness studio, which was completed in June this year.
There will be further renovations in 2008 to the hotel’s rooms, including new furniture and the latest audio visual facilities in every room.
Source : Business Times - 23 Oct 2007
Friday, October 19, 2007
A HOTEL development site at Sturdee Road has been put on the reserve list of the Government Land Sales (GLS) programme.
A HOTEL development site at Sturdee Road has been put on the reserve list of the Government Land Sales (GLS) programme.
The site is one of the four new hotel sites on the GLS programme for the second half of this year.
There are already five hotel sites on the reserve list, with two more expected by the end of the year.
The 0.61 ha site could go for between $430-$450 per square foot per plot ratio (psf ppr), it is reckoned by Donald Han, managing director at Cushman & Wakefield.
Mr Han noted that a white site at Race Course Road recently sold for $430 psf ppr in September. He said: ‘The Race Course Road hotel site may be located nearer to the MRT station than the Sturdee Road site, but hotel market sentiment is increasingly more optimistic now, judging from higher than expected bid prices for the Upper Pickering Street site.’
The site mentioned went to Hotel Plaza for $253.2 million or $805 psf ppr.
Other recent successful hotel site tenders include one on Tanjong Pagar Road/Gopeng Street awarded to Carlton Properties for $123 million, or $573 psf ppr in June. In July, a site at Tras Street went to businessman Chng Gim Huat of the CGH Group for $97.1 million, or $562 psf ppr.
The Sturdee Road site has maximum permissible gross floor area (GFA) of 18,334 sq m and can yield an estimated 430 hotel rooms.
A minimum of 60 per cent of the total GFA must be used for hotel rooms or hotel-related uses. The rest can be for commercial, and/or residential uses.
So far, the other hotel site put on the reserve list for H2′07 is at Jalan Bukit Merah/Alexandra Road.
The Urban Redevelopment Authority withdrew a hotel site at Balestier Road/Ah Hood Road from the reserve list this month.
About 9,100 new hotel rooms are expected to be completed from the second half of 2007 to 2010. This includes the supply of new hotel rooms from the two integrated resorts, Marina Bay Sands and Resorts World at Sentosa, which are expected to be completed in 2009 and 2010.
Source : Business Times - 17 Oct 2007
The site is one of the four new hotel sites on the GLS programme for the second half of this year.
There are already five hotel sites on the reserve list, with two more expected by the end of the year.
The 0.61 ha site could go for between $430-$450 per square foot per plot ratio (psf ppr), it is reckoned by Donald Han, managing director at Cushman & Wakefield.
Mr Han noted that a white site at Race Course Road recently sold for $430 psf ppr in September. He said: ‘The Race Course Road hotel site may be located nearer to the MRT station than the Sturdee Road site, but hotel market sentiment is increasingly more optimistic now, judging from higher than expected bid prices for the Upper Pickering Street site.’
The site mentioned went to Hotel Plaza for $253.2 million or $805 psf ppr.
Other recent successful hotel site tenders include one on Tanjong Pagar Road/Gopeng Street awarded to Carlton Properties for $123 million, or $573 psf ppr in June. In July, a site at Tras Street went to businessman Chng Gim Huat of the CGH Group for $97.1 million, or $562 psf ppr.
The Sturdee Road site has maximum permissible gross floor area (GFA) of 18,334 sq m and can yield an estimated 430 hotel rooms.
A minimum of 60 per cent of the total GFA must be used for hotel rooms or hotel-related uses. The rest can be for commercial, and/or residential uses.
So far, the other hotel site put on the reserve list for H2′07 is at Jalan Bukit Merah/Alexandra Road.
The Urban Redevelopment Authority withdrew a hotel site at Balestier Road/Ah Hood Road from the reserve list this month.
About 9,100 new hotel rooms are expected to be completed from the second half of 2007 to 2010. This includes the supply of new hotel rooms from the two integrated resorts, Marina Bay Sands and Resorts World at Sentosa, which are expected to be completed in 2009 and 2010.
Source : Business Times - 17 Oct 2007
Thursday, October 11, 2007
A HOTEL site at Upper Pickering Street has drawn strong interest from developers, with the highest bid being a record one for such a property.
A HOTEL site at Upper Pickering Street has drawn strong interest from developers, with the highest bid being a record one for such a property.
Nine bids had been submitted when the tender closed yesterday.
The top bidder - mainboard-listed Hotel Plaza - put in a price of $253.2 million for the 6,959 sq m site. Given the gross floor area of 29,227 sq m, this works out to about $805 per sq ft per plot ratio (psf ppr).
Hotel Plaza is developer United Overseas Land’s hotel arm.
Hotel Plaza’s bid was 21 per cent higher than the second-highest bid of $209 million, or $664 psf ppr, placed by Park Plaza.
The record bid is at least 40 per cent higher than the prices paid for two hotel sites on Tanjong Pagar Road that were awarded recently, said CBRE Research’s executive director, Mr Li Hiaw Ho.
In June, a hotel site on Tanjong Pagar Road and Gopeng Street was awarded to Carlton Properties for $123 million, or $573 psf ppr.
A month later, the Urban Redevelopment Authority (URA) awarded a hotel plot on Tras Street to businessman Chng Gim Huat of the CGH Group for $97.1 million, or $562 psf ppr.
‘The prevailing optimistic mood in the hotel and tourism markets could account for the record-high prices submitted for the Upper Pickering Street site,’ said CBRE’s Mr Li.
The 99-year leasehold site, launched for sale by the URA on July 18, is located in an ideal spot - at the junction of New Bridge Road and Upper Pickering Street and at the edge of the Central Business District - to cater to business travellers, said Mr Li.
Besides Hotel Plaza and Park Plaza, there were seven other bidders, including Hiap Hoe Superbowl and Ho Bee Investment.
Hotel Plaza currently owns and operates the 350-room Plaza Parkroyal, the adjoining The Plaza and the 337-room Grand Plaza Parkroyal Hotel, among others.
The group also has interests in hotels overseas.
The URA said yesterday that the bids will be evaluated and that the decision on the award will be made later.
Source : Straits Times - 11 Oct 2007
Nine bids had been submitted when the tender closed yesterday.
The top bidder - mainboard-listed Hotel Plaza - put in a price of $253.2 million for the 6,959 sq m site. Given the gross floor area of 29,227 sq m, this works out to about $805 per sq ft per plot ratio (psf ppr).
Hotel Plaza is developer United Overseas Land’s hotel arm.
Hotel Plaza’s bid was 21 per cent higher than the second-highest bid of $209 million, or $664 psf ppr, placed by Park Plaza.
The record bid is at least 40 per cent higher than the prices paid for two hotel sites on Tanjong Pagar Road that were awarded recently, said CBRE Research’s executive director, Mr Li Hiaw Ho.
In June, a hotel site on Tanjong Pagar Road and Gopeng Street was awarded to Carlton Properties for $123 million, or $573 psf ppr.
A month later, the Urban Redevelopment Authority (URA) awarded a hotel plot on Tras Street to businessman Chng Gim Huat of the CGH Group for $97.1 million, or $562 psf ppr.
‘The prevailing optimistic mood in the hotel and tourism markets could account for the record-high prices submitted for the Upper Pickering Street site,’ said CBRE’s Mr Li.
The 99-year leasehold site, launched for sale by the URA on July 18, is located in an ideal spot - at the junction of New Bridge Road and Upper Pickering Street and at the edge of the Central Business District - to cater to business travellers, said Mr Li.
Besides Hotel Plaza and Park Plaza, there were seven other bidders, including Hiap Hoe Superbowl and Ho Bee Investment.
Hotel Plaza currently owns and operates the 350-room Plaza Parkroyal, the adjoining The Plaza and the 337-room Grand Plaza Parkroyal Hotel, among others.
The group also has interests in hotels overseas.
The URA said yesterday that the bids will be evaluated and that the decision on the award will be made later.
Source : Straits Times - 11 Oct 2007
Wednesday, October 10, 2007
Withdrawal of hotel site at Balestier Road / Ah Hood Road from reserve list
Withdrawal of hotel site at Balestier Road / Ah Hood Road from reserve list
The Urban Redevelopment Authority (URA) today announced that it has decided to withdraw the hotel site at Balestier Road/Ah Hood Road from the Reserve List of the Government Land Sales (GLS) Programme for the second half of 2007 with immediate effect.
Under the Reserve List, the Government will only release a site for sale if an interested party submits an application for the site to be put up for tender with an offer of a minimum purchase price that is acceptable to the Government.
The Balestier Road/Ah Hood Road site has been placed on the Reserve List since 26 Oct 2006. It was planned to be developed for hotel use on a 99-year lease. Annex A shows the location of the site.
URA is withdrawing the site from the Reserve List with immediate effect, as it is reviewing the land use plan of the site together with the other vacant land in the vicinity.
The Urban Redevelopment Authority (URA) today announced that it has decided to withdraw the hotel site at Balestier Road/Ah Hood Road from the Reserve List of the Government Land Sales (GLS) Programme for the second half of 2007 with immediate effect.
Under the Reserve List, the Government will only release a site for sale if an interested party submits an application for the site to be put up for tender with an offer of a minimum purchase price that is acceptable to the Government.
The Balestier Road/Ah Hood Road site has been placed on the Reserve List since 26 Oct 2006. It was planned to be developed for hotel use on a 99-year lease. Annex A shows the location of the site.
URA is withdrawing the site from the Reserve List with immediate effect, as it is reviewing the land use plan of the site together with the other vacant land in the vicinity.
Saturday, October 6, 2007
SINGAPORE‘S hotel sector is currently enjoying a new surge of energy and opportunities brought about by the government’s efforts
SINGAPORE‘S hotel sector is currently enjoying a new surge of energy and opportunities brought about by the government’s efforts to reinvigorate tourism.
Complementing efforts by the Singapore Tourism Board (STB) to raise visitor numbers to 17 million by 2015, the government had in recent years released more sites for hotel development under its Government Land Sales (GLS) programme to meet the anticipated accommodation needs.
The state land tenders have generally been met with keen industry interest, buoyed by the strong trading conditions that have prevailed with the current strong demand and tight room supply. This is a stark contrast to the 1990s when the government announced a hotel safeguarding policy in 1997 to check the creeping trend of hotels being converted to residential use.
Latest numbers from the tourism authority showed a total of 225 hotels and 36,891 rooms in Singapore’s accommodation market as at end-2005. There is no existing star-rating system in Singapore and the current hotel stock is sub-divided into 103 gazetted hotels (30,445 rooms) and 122 non-gazetted hotels.
Jones Lang LaSalle Hotels estimates that around 81 per cent of the gazetted 30,445 rooms fall within the upper-tier four-star and five-star hotel segments.
Geographically, the majority of these upper-tier hotels are concentrated along the traditional hotel belt: Orchard Road, City Hall, Suntec City/Marina Centre, Bras Basah/Bugis and the CBD/Boat Quay/Clarke Quay.
Familiar international brands found within these localities include the Ritz-Carlton, Marriott, Grand Hyatt, Hilton, Shangri-La, Four Seasons, Raffles, Swissotel, Traders, Pan Pacific, Conrad, Meritus, Novotel as well as The Oriental Singapore which was re-named the Mandarin Oriental Singapore from Sept 25.
Outside of these locations, a cluster of smaller, self-managed budget or boutique hotels have emerged in the Chinatown, Little India and Geylang/ East Coast/Joo Chiat areas.
Sentosa Island is now home to a handful of mid- to high-end hotel properties such as The Sentosa Resort & Spa, Shangri-La’s Rasa Sentosa Resort and the new Amara Sanctuary Resort Sentosa.
A more exciting local hotel scene is unfolding with a new cast of players, additional brands and creative product concepts. Riding on the opportunities presented by the renewal of the tourism industry, international hotel management companies such as Accor, Starwood Hotels & Resorts and the InterContinental Hotels Group (IHG) are growing their presence in Singapore by bringing in other brands from their portfolios that are currently not in this market.
Ranging from boutique to mid-tier to luxury establishments, many of these new hotel developments are being established in non-traditional hotel locations such as Tanjong Pagar, One-North, Labrador Park and Novena areas. A new 320-room Crowne Plaza, a brand from the IHG family, is scheduled to open at the Singapore Changi Airport next year.
United Engineers, a local developer with a strong focus on the residential sector, has announced plans to build a business hotel at Singapore’s biosciences hub at South Buona Vista. With the latest GLS programme for the second half of 2007 including sites like Jalan Bukit Merah/Alexan- der Road, Outram Park and Kampong Glam for hotel development, more hotels can be expected to spring up outside of the typical hotel hot spots.
The two upcoming mega integrated resorts (IRs) at Marina Bay and Sentosa will also be the launch-pads for new hotel brands and concepts. While Sands @Marina Bay will offer 2,500 rooms in the upper-tier sector in 2009, Resorts World @Sentosa will add another 1,830 rooms in six hotels in 2010.The latter will comprise a Hard Rock Hotel, the Hotel Michael boutique hotel, the Festive Hotel with a Hollywood theme, an iconic Maxims Residences, the Equarius Hotel with a lush greenery theme and the ESPA Villas.
Resort and villa-type establishments, too, are making a stronger statement in Singapore. Apart from the ESPA Villas, Villa Raintree @Labrador Nature Reserve (a refurbishment project) as well as the recently opened Amara Sanctuary Resort and the upcoming Capella Singapore at Sentosa fall under this category.
Meanwhile, the luxury hotel segment will soon witness the opening of the 299-room St Regis Hotel at end-2007. Sino Land plans to open a new 120-room boutique hotel at Collyer Quay in 2009, while a new 320-room W Hotel at Sentosa Cove is expected to be operational by the end of 2010.
The entry of these new hotels will up the ante in Singapore’s luxury hotel segment, which currently comprises the Four Seasons, Shangri-La, Ritz-Carlton and The Fullerton.
The present lack of quality branded mid-tier accommodation options has created opportunities for new niche developments that are targeted at specific market segments. For example, Far East Organization’s upcoming hotel at Sinaran Drive next to the Tan Tock Seng Hospital will cater to the needs of the growing inbound medical tourist segment.
Similar opportunities are available at a government ‘white’ site on the current Reserve List that is located at Outram Road/Eu Tong Seng Street to develop a 555-room hotel near the Singapore General Hospital.
The proliferation of low-cost carriers in Asia has also fuelled the growth of lower-tier segment, with the new Ibis Hotel scheduled to open at Bencoolen Street in 2009 a case in point. More recently, the Hong Leong Group has linked up with Istithmar PJSC and Tune Hotels.com to open around 30 budget hotels in South-east Asia, including Singapore.
The completion of the Marina Bay and Sentosa IRs as well as supporting infrastructure and tourist attractions in the Marina and Sentosa vicinities will collectively cultivate an environment conducive for the entry of differentiated quality and luxury hotel products to the Singapore marketplace.
The arrival of new brands and new-generation properties such as W, Westin, Fairmont, emerging Middle East Groups like Jumeriah and from the Indian sub-continent, groups like Taj and Oberoi, will provide synergy for the broader local hotel market and is anticipated to generate a wider geographical capture and mix of tourist traffic to Singapore.
In the longer term, new hybrid products such as condotels (or condo-hotels) that are established in the US but still relatively untested in Asia, may be introduced, although the success of such products will hinge on the regulatory framework.
In the meantime, with a wider selection of accommodation offerings to suit the different budgets and expectations of visitors, guests can look forward to a more varied and interesting stay experience in Singapore.
Complementing efforts by the Singapore Tourism Board (STB) to raise visitor numbers to 17 million by 2015, the government had in recent years released more sites for hotel development under its Government Land Sales (GLS) programme to meet the anticipated accommodation needs.
The state land tenders have generally been met with keen industry interest, buoyed by the strong trading conditions that have prevailed with the current strong demand and tight room supply. This is a stark contrast to the 1990s when the government announced a hotel safeguarding policy in 1997 to check the creeping trend of hotels being converted to residential use.
Latest numbers from the tourism authority showed a total of 225 hotels and 36,891 rooms in Singapore’s accommodation market as at end-2005. There is no existing star-rating system in Singapore and the current hotel stock is sub-divided into 103 gazetted hotels (30,445 rooms) and 122 non-gazetted hotels.
Jones Lang LaSalle Hotels estimates that around 81 per cent of the gazetted 30,445 rooms fall within the upper-tier four-star and five-star hotel segments.
Geographically, the majority of these upper-tier hotels are concentrated along the traditional hotel belt: Orchard Road, City Hall, Suntec City/Marina Centre, Bras Basah/Bugis and the CBD/Boat Quay/Clarke Quay.
Familiar international brands found within these localities include the Ritz-Carlton, Marriott, Grand Hyatt, Hilton, Shangri-La, Four Seasons, Raffles, Swissotel, Traders, Pan Pacific, Conrad, Meritus, Novotel as well as The Oriental Singapore which was re-named the Mandarin Oriental Singapore from Sept 25.
Outside of these locations, a cluster of smaller, self-managed budget or boutique hotels have emerged in the Chinatown, Little India and Geylang/ East Coast/Joo Chiat areas.
Sentosa Island is now home to a handful of mid- to high-end hotel properties such as The Sentosa Resort & Spa, Shangri-La’s Rasa Sentosa Resort and the new Amara Sanctuary Resort Sentosa.
A more exciting local hotel scene is unfolding with a new cast of players, additional brands and creative product concepts. Riding on the opportunities presented by the renewal of the tourism industry, international hotel management companies such as Accor, Starwood Hotels & Resorts and the InterContinental Hotels Group (IHG) are growing their presence in Singapore by bringing in other brands from their portfolios that are currently not in this market.
Ranging from boutique to mid-tier to luxury establishments, many of these new hotel developments are being established in non-traditional hotel locations such as Tanjong Pagar, One-North, Labrador Park and Novena areas. A new 320-room Crowne Plaza, a brand from the IHG family, is scheduled to open at the Singapore Changi Airport next year.
United Engineers, a local developer with a strong focus on the residential sector, has announced plans to build a business hotel at Singapore’s biosciences hub at South Buona Vista. With the latest GLS programme for the second half of 2007 including sites like Jalan Bukit Merah/Alexan- der Road, Outram Park and Kampong Glam for hotel development, more hotels can be expected to spring up outside of the typical hotel hot spots.
The two upcoming mega integrated resorts (IRs) at Marina Bay and Sentosa will also be the launch-pads for new hotel brands and concepts. While Sands @Marina Bay will offer 2,500 rooms in the upper-tier sector in 2009, Resorts World @Sentosa will add another 1,830 rooms in six hotels in 2010.The latter will comprise a Hard Rock Hotel, the Hotel Michael boutique hotel, the Festive Hotel with a Hollywood theme, an iconic Maxims Residences, the Equarius Hotel with a lush greenery theme and the ESPA Villas.
Resort and villa-type establishments, too, are making a stronger statement in Singapore. Apart from the ESPA Villas, Villa Raintree @Labrador Nature Reserve (a refurbishment project) as well as the recently opened Amara Sanctuary Resort and the upcoming Capella Singapore at Sentosa fall under this category.
Meanwhile, the luxury hotel segment will soon witness the opening of the 299-room St Regis Hotel at end-2007. Sino Land plans to open a new 120-room boutique hotel at Collyer Quay in 2009, while a new 320-room W Hotel at Sentosa Cove is expected to be operational by the end of 2010.
The entry of these new hotels will up the ante in Singapore’s luxury hotel segment, which currently comprises the Four Seasons, Shangri-La, Ritz-Carlton and The Fullerton.
The present lack of quality branded mid-tier accommodation options has created opportunities for new niche developments that are targeted at specific market segments. For example, Far East Organization’s upcoming hotel at Sinaran Drive next to the Tan Tock Seng Hospital will cater to the needs of the growing inbound medical tourist segment.
Similar opportunities are available at a government ‘white’ site on the current Reserve List that is located at Outram Road/Eu Tong Seng Street to develop a 555-room hotel near the Singapore General Hospital.
The proliferation of low-cost carriers in Asia has also fuelled the growth of lower-tier segment, with the new Ibis Hotel scheduled to open at Bencoolen Street in 2009 a case in point. More recently, the Hong Leong Group has linked up with Istithmar PJSC and Tune Hotels.com to open around 30 budget hotels in South-east Asia, including Singapore.
The completion of the Marina Bay and Sentosa IRs as well as supporting infrastructure and tourist attractions in the Marina and Sentosa vicinities will collectively cultivate an environment conducive for the entry of differentiated quality and luxury hotel products to the Singapore marketplace.
The arrival of new brands and new-generation properties such as W, Westin, Fairmont, emerging Middle East Groups like Jumeriah and from the Indian sub-continent, groups like Taj and Oberoi, will provide synergy for the broader local hotel market and is anticipated to generate a wider geographical capture and mix of tourist traffic to Singapore.
In the longer term, new hybrid products such as condotels (or condo-hotels) that are established in the US but still relatively untested in Asia, may be introduced, although the success of such products will hinge on the regulatory framework.
In the meantime, with a wider selection of accommodation offerings to suit the different budgets and expectations of visitors, guests can look forward to a more varied and interesting stay experience in Singapore.
Friday, September 28, 2007
Business is brisk as visitor arrivals climb steadily, pushing up room rates and triggering a flurry of new hotel construction
Business is brisk as visitor arrivals climb steadily, pushing up room rates and triggering a flurry of new hotel construction, writes DONALD HAN
SINGAPORE is all set to spur tourism in the next few years with high-impact projects like the two integrated resorts, the Singapore Flyer, the Formula One (F1) Grand Prix and a rejuvenated Orchard Road.
Last year, a new record was set with 9.7 million foreign visitors coming to Singapore. This year’s visitor arrivals are expected to hit a blistering 10.2 million with Singapore Tourism Board (STB) numbers showing a glowing mid-term report card. From January to July this year, visitor figures reached 5.9 million, a 5 per cent rise over the same period last year. July alone saw hotels raking in $168 million in room revenue, a 28 per cent increase from a year ago. This puts it right on target for another record-breaking year.
STB has set a target of 17 million visitor arrivals by 2015 with $30 billion in tourism receipts. Based on the impressive year-on-year growth over the past 12 months, we should be on track to achieve the 2015 target.
To meet the growing number of visitor arrivals, more hotel rooms have to be built. Presently, there are about 37,000 rooms in Singapore. Based on new supply under construction, some 11,000 rooms will come on-stream by 2010. This includes 4,300 rooms from the two integrated resorts at Marina Bay and Sentosa. It is estimated that in 2010, a total of 14 million foreign visitors will visit Singapore. Based on a conservative average stay of 3.4 days, the city-state will experience an acute shortage of at least 35,000 rooms from now till 2010. Come next September, the F1 event alone will bring an estimated 50,000 visitors. In short, our existing hotel stock needs to be doubled in the next three years to meet surging demand.
To meet this need, the government has since 2006 offered 25 hotel sites for sale. Of this, 10 sites valued at $2.4 billion million have been acquired by developers. In addition, 11 hotels have effectively changed hands. Total private hotel investments soared to over $1.3 billion. Another two hotels, Paramount Hotel and Mitre Hotel, are either under negotiation or waiting for a finalised offer.
About 53 per cent or nine out of the total 17 hotel properties (including government sites), were sold to international investment funds, foreign hoteliers and investors since 2006. In the recent Beach Road tender, US-based Elad Group and Dubai-based Istithmar are joining forces to develop a $2.7 billion integrated hotel, office and retail project. The strong interest from foreign investors shows their astute reading of the opportunities arising from the shortage of Singapore hotel rooms, as well as the potential of reaping higher yields from room-rate increases. It is this overwhelmingly positive outlook that is driving investors’ appetite.
In the first half of this year, the average occupancy rate (AOR) hit a high of 86 per cent with average room rates (ARR) reaching $189. STB recently announced that ARR had increased to $210 in June, the highest rate ever achieved. AOR in July hit 91 per cent, a whisker shy away of November 2006’s 13-month peak of 92 per cent. With the third and fourth quarters typically being the busy period for hoteliers, room charges and occupancy rates are likely to be maintained or surge further.
For 2008, we are projecting that AOR will test the 90 per cent level with ARR expected to grow by at least 15 per cent from current levels.
With higher occupancy and rising room rates, the burning question is: Can Singapore hotels maintain their competitiveness to continue attracting foreign visitors? The answer is a resounding yes, based on the following reasons.
Singapore ranks sixth out of 15 key Asian cities in terms of ARR, according to a recent Cushman & Wakefield survey. Tokyo has the distinction of having the highest room rates in Asia followed by Hong Kong.
The government has been releasing more three-star hotel sites as part of its strategy to have enough affordable class hotels. These hotels cater to budget-conscious tourists, predominantly from South-east Asia, China and India. The hotel sites on the government sale list tend to be located at the city fringe such as Alexandra Road and Bencoolen Street. The latter is where Accor’s Ibis three-star 538-room hotel will be built.
The opening of Changi Airport’s Terminal 3 in January next year is set to bring in a steady stream of foreign visitors. The new terminal is capable of handling up to 22 million passengers a year and some of the world’s largest aircraft.
Despite the US sub-prime lending setback, Singapore’s hospitality sector is experiencing one of its strongest recoveries in over a decade. The market is at the initial stages of takeoff as the high-impact tourism projects start to unveil from 2008. This is when the world’s tallest observatory, the Singapore Flyer and the F1 Grand Prix take centrestage in thrilling visitors from around the world.
A year later, all eyes will be on the opening of Marina Bay Sands, which will be the most expensive casino-cum-integrated resort ever built. In 2010, Universal Studios and Resorts World will open their doors to charm a global audience.
Some cities looking to break onto the world stage have looked to hosting mega catalytic events like the Olympic Games, which would instantly give them global city status. Singapore has its own booster in the high-impact tourism projects that will be ready between 2008 and 2010. These should collectively propel Singapore to a different league in the global travel and hospitality industry.
The writer is managing director, Cushman & Wakefield
Source : Business Times - 27 Sep 2007
SINGAPORE is all set to spur tourism in the next few years with high-impact projects like the two integrated resorts, the Singapore Flyer, the Formula One (F1) Grand Prix and a rejuvenated Orchard Road.
Last year, a new record was set with 9.7 million foreign visitors coming to Singapore. This year’s visitor arrivals are expected to hit a blistering 10.2 million with Singapore Tourism Board (STB) numbers showing a glowing mid-term report card. From January to July this year, visitor figures reached 5.9 million, a 5 per cent rise over the same period last year. July alone saw hotels raking in $168 million in room revenue, a 28 per cent increase from a year ago. This puts it right on target for another record-breaking year.
STB has set a target of 17 million visitor arrivals by 2015 with $30 billion in tourism receipts. Based on the impressive year-on-year growth over the past 12 months, we should be on track to achieve the 2015 target.
To meet the growing number of visitor arrivals, more hotel rooms have to be built. Presently, there are about 37,000 rooms in Singapore. Based on new supply under construction, some 11,000 rooms will come on-stream by 2010. This includes 4,300 rooms from the two integrated resorts at Marina Bay and Sentosa. It is estimated that in 2010, a total of 14 million foreign visitors will visit Singapore. Based on a conservative average stay of 3.4 days, the city-state will experience an acute shortage of at least 35,000 rooms from now till 2010. Come next September, the F1 event alone will bring an estimated 50,000 visitors. In short, our existing hotel stock needs to be doubled in the next three years to meet surging demand.
To meet this need, the government has since 2006 offered 25 hotel sites for sale. Of this, 10 sites valued at $2.4 billion million have been acquired by developers. In addition, 11 hotels have effectively changed hands. Total private hotel investments soared to over $1.3 billion. Another two hotels, Paramount Hotel and Mitre Hotel, are either under negotiation or waiting for a finalised offer.
About 53 per cent or nine out of the total 17 hotel properties (including government sites), were sold to international investment funds, foreign hoteliers and investors since 2006. In the recent Beach Road tender, US-based Elad Group and Dubai-based Istithmar are joining forces to develop a $2.7 billion integrated hotel, office and retail project. The strong interest from foreign investors shows their astute reading of the opportunities arising from the shortage of Singapore hotel rooms, as well as the potential of reaping higher yields from room-rate increases. It is this overwhelmingly positive outlook that is driving investors’ appetite.
In the first half of this year, the average occupancy rate (AOR) hit a high of 86 per cent with average room rates (ARR) reaching $189. STB recently announced that ARR had increased to $210 in June, the highest rate ever achieved. AOR in July hit 91 per cent, a whisker shy away of November 2006’s 13-month peak of 92 per cent. With the third and fourth quarters typically being the busy period for hoteliers, room charges and occupancy rates are likely to be maintained or surge further.
For 2008, we are projecting that AOR will test the 90 per cent level with ARR expected to grow by at least 15 per cent from current levels.
With higher occupancy and rising room rates, the burning question is: Can Singapore hotels maintain their competitiveness to continue attracting foreign visitors? The answer is a resounding yes, based on the following reasons.
Singapore ranks sixth out of 15 key Asian cities in terms of ARR, according to a recent Cushman & Wakefield survey. Tokyo has the distinction of having the highest room rates in Asia followed by Hong Kong.
The government has been releasing more three-star hotel sites as part of its strategy to have enough affordable class hotels. These hotels cater to budget-conscious tourists, predominantly from South-east Asia, China and India. The hotel sites on the government sale list tend to be located at the city fringe such as Alexandra Road and Bencoolen Street. The latter is where Accor’s Ibis three-star 538-room hotel will be built.
The opening of Changi Airport’s Terminal 3 in January next year is set to bring in a steady stream of foreign visitors. The new terminal is capable of handling up to 22 million passengers a year and some of the world’s largest aircraft.
Despite the US sub-prime lending setback, Singapore’s hospitality sector is experiencing one of its strongest recoveries in over a decade. The market is at the initial stages of takeoff as the high-impact tourism projects start to unveil from 2008. This is when the world’s tallest observatory, the Singapore Flyer and the F1 Grand Prix take centrestage in thrilling visitors from around the world.
A year later, all eyes will be on the opening of Marina Bay Sands, which will be the most expensive casino-cum-integrated resort ever built. In 2010, Universal Studios and Resorts World will open their doors to charm a global audience.
Some cities looking to break onto the world stage have looked to hosting mega catalytic events like the Olympic Games, which would instantly give them global city status. Singapore has its own booster in the high-impact tourism projects that will be ready between 2008 and 2010. These should collectively propel Singapore to a different league in the global travel and hospitality industry.
The writer is managing director, Cushman & Wakefield
Source : Business Times - 27 Sep 2007
Monday, September 17, 2007
In some parts of the world, conviction is driving hotels to go green.
In some parts of the world, conviction is driving hotels to go green. But, as several hotels in Singapore have concluded, common sense points to the same path.
The Far East Organization, for example, realised that its corporate electricity bill for all its properties across Singapore was $33 million a year. ‘Imagine if we can cut that by 10 per cent,’ said Chia Swee Cheng, assistant director of the group’s central engineering & operations department.
And so its Changi Village hotel has new boiler and chiller systems in place and a far more efficient energy use.
Over at the Grand Hyatt, Singapore’s first plant to produce electricity, steam and chilled water at a hotel is under construction. Along with the solar panels planned for a new garden conference room, the plant could slash Hyatt’s energy use by a third and save it $800,000 in bills.
While critics say that many local hotels pay only lip service to eco-programmes, there are others, led by Hyatt, who are changing mindsets, going green - and finding that it pays.
‘My impression is that all the hotel operators are serious about sustainability, but not necessarily all the owners, who have to pay for changes,’ said Robert Hacker of Horwath, a hotel consultancy. ‘Generally, all the international chains are taking on board green principles.’
The Regent Singapore, for example, in late 2005 replaced a diesel boiler for heating water with a heat exchanger that produces hot and cold water at the same time. This has cut energy use by a fifth.
And at the Shangri-La, energy use improved over 10 per cent through better work processes, such as using small ovens to prepare meals on demand, rather than keeping a large oven fired up all day just to reheat food. But critics like Tay Kheng Soon, architect and promoter of socially and environmentally conscious architecture in Singapore since the 1970s, say Hyatt is the only energy-efficient hotel in Singapore.
And though the National Environment Agency handed out the new Energy Smart label to some hotels last month, that is only a starting point, said Mr Tay. A more basic change might come about, in his opinion, if there were incentives to use renewable energy sources, like wind and solar energy.
Many hotels ‘hand-wave’ over cosmetic eco-programmes, like using hybrid cars to ferry guests or planting trees, but miss the ‘elephant in the room’ - like the efficiency of their chiller systems - said Lee Eng Lock, general manager of Trane, a US-based energy solutions firm and an accredited Energy Service Company (ESCO) here.
The Hyatt sets the bar but there is no reason why others should not follow suit, with high returns and backed by bank guarantees, said Mr Lee.
But business in the hotel sector is negotiated on the basis of relationships, so it is not necessarily the most efficient solutions that get selected, he said.
Luxury hotels in Singapore run at an energy intensity of 427 kilowatt hours of electricity per square metre of gross floor area, according to a study by the National University of Singapore (NUS) last year. This is down from the 468 KWh/m2 reported by Apec in 1999, but pales beside the under-300 KWh/m2 averages achieved in parts of Europe and Australia.
In other words, local hotels could be using up to 40 per cent more electricity than ideal.
Dr Lee Siew Eang, head of NUS’s Energy Sustainability Unit and leader of the study, recalls some four and fivestar hotels saying during the study that energy efficiency was ‘not relevant’ to them - since, as ‘posh hotels’, it was ‘their duty to be extravagant’.
Many hotel managers were not aware of how much energy their buildings were using. One hotel, which had wanted to apply for an eco-award, was found by NUS to be using an exceptionally high 800 KWh/m2, said Dr Lee.
That’s almost twice the industry average. According to the Singapore Hotel Association (SHA), which represents about 90 per cent of the total number of gazetted hotel rooms here, most hotels in Singapore pay attention to water and energy conservation. ‘In the long run, it makes good corporate sense for hotels to go green as it not only saves the environment but reduces costs,’ said SHA president Kay Kuok.
Whether the message has sunk home is another matter. With the two integrated resorts set to help up Singapore’s hotel room stock by over 10 per cent by 2010, it is a critical time to move into energy efficiency, said NUS’s Dr Lee. ‘The designs are being drawn right now. If we miss this chance, we have to wait another 20 years.’
Source: Business Times 15 Sept 07
The Far East Organization, for example, realised that its corporate electricity bill for all its properties across Singapore was $33 million a year. ‘Imagine if we can cut that by 10 per cent,’ said Chia Swee Cheng, assistant director of the group’s central engineering & operations department.
And so its Changi Village hotel has new boiler and chiller systems in place and a far more efficient energy use.
Over at the Grand Hyatt, Singapore’s first plant to produce electricity, steam and chilled water at a hotel is under construction. Along with the solar panels planned for a new garden conference room, the plant could slash Hyatt’s energy use by a third and save it $800,000 in bills.
While critics say that many local hotels pay only lip service to eco-programmes, there are others, led by Hyatt, who are changing mindsets, going green - and finding that it pays.
‘My impression is that all the hotel operators are serious about sustainability, but not necessarily all the owners, who have to pay for changes,’ said Robert Hacker of Horwath, a hotel consultancy. ‘Generally, all the international chains are taking on board green principles.’
The Regent Singapore, for example, in late 2005 replaced a diesel boiler for heating water with a heat exchanger that produces hot and cold water at the same time. This has cut energy use by a fifth.
And at the Shangri-La, energy use improved over 10 per cent through better work processes, such as using small ovens to prepare meals on demand, rather than keeping a large oven fired up all day just to reheat food. But critics like Tay Kheng Soon, architect and promoter of socially and environmentally conscious architecture in Singapore since the 1970s, say Hyatt is the only energy-efficient hotel in Singapore.
And though the National Environment Agency handed out the new Energy Smart label to some hotels last month, that is only a starting point, said Mr Tay. A more basic change might come about, in his opinion, if there were incentives to use renewable energy sources, like wind and solar energy.
Many hotels ‘hand-wave’ over cosmetic eco-programmes, like using hybrid cars to ferry guests or planting trees, but miss the ‘elephant in the room’ - like the efficiency of their chiller systems - said Lee Eng Lock, general manager of Trane, a US-based energy solutions firm and an accredited Energy Service Company (ESCO) here.
The Hyatt sets the bar but there is no reason why others should not follow suit, with high returns and backed by bank guarantees, said Mr Lee.
But business in the hotel sector is negotiated on the basis of relationships, so it is not necessarily the most efficient solutions that get selected, he said.
Luxury hotels in Singapore run at an energy intensity of 427 kilowatt hours of electricity per square metre of gross floor area, according to a study by the National University of Singapore (NUS) last year. This is down from the 468 KWh/m2 reported by Apec in 1999, but pales beside the under-300 KWh/m2 averages achieved in parts of Europe and Australia.
In other words, local hotels could be using up to 40 per cent more electricity than ideal.
Dr Lee Siew Eang, head of NUS’s Energy Sustainability Unit and leader of the study, recalls some four and fivestar hotels saying during the study that energy efficiency was ‘not relevant’ to them - since, as ‘posh hotels’, it was ‘their duty to be extravagant’.
Many hotel managers were not aware of how much energy their buildings were using. One hotel, which had wanted to apply for an eco-award, was found by NUS to be using an exceptionally high 800 KWh/m2, said Dr Lee.
That’s almost twice the industry average. According to the Singapore Hotel Association (SHA), which represents about 90 per cent of the total number of gazetted hotel rooms here, most hotels in Singapore pay attention to water and energy conservation. ‘In the long run, it makes good corporate sense for hotels to go green as it not only saves the environment but reduces costs,’ said SHA president Kay Kuok.
Whether the message has sunk home is another matter. With the two integrated resorts set to help up Singapore’s hotel room stock by over 10 per cent by 2010, it is a critical time to move into energy efficiency, said NUS’s Dr Lee. ‘The designs are being drawn right now. If we miss this chance, we have to wait another 20 years.’
Source: Business Times 15 Sept 07
Friday, September 7, 2007
Naumi, the latest name in boutique hotels, opens in Singapore next week, with room rates ranging from $390 to $1,200.
Naumi, the latest name in boutique hotels, opens in Singapore next week, with room rates ranging from $390 to $1,200.
Located next to Raffles Hotel in Seah Street, the 40-room Naumi will offer mostly deluxe suites costing $500 a night - about the same as a room at a five-star hotel. But Naumi is a different proposition. Owned by the Hind Group, its managing director Surya Jhunjhnuwala says that the hotel will provide ‘highly personalised’ service.
The initial staff-to-guest ratio is one to one - and Mr Jhunjhnuwala still expects this to increase. His family owned the Imperial Hotel off River Valley Road between 1977 and 1999 before selling it. ‘We have always been keen to get back into the hospitality business,’ he says.
This time, Hind Group wants to focus on the boutique segment. Mr Jhunjhnuwala says that the target is to have hotels with a total of 1,000 rooms within three years, with the ideal size for a Naumi hotel being 30-70 rooms.
The group will look for opportunities in China, Vietnam, Hong Kong and Thailand and is still looking in Singapore. But it is not likely to find anything for $18 million - the price it paid for the Metropole Hotel in April 2006, which was converted into Naumi in eight months.
Indeed, it could sell the hotel now and make a tidy profit. But Mr Jhunjhnuwala says that although there is ‘a price for everything’, selling Naumi is not the plan at present. The old Metropole Hotel was gutted and given a hip makeover by award-winning local firm Eco-id Architecture and Design at a cost of more than $10 million or an estimated $250,000 a room.
Naumi is by no means Singapore’s first boutique hotel. Establishments such as The Scarlet, Hotel 1929 and the New Majestic Hotel are already popular with the fashion-conscious crowd.
But Mr Jhunjhnuwala says Naumi is less ‘thematic’. He is confident it will provide at least a 5 per cent return on investment.
Source : Business Times - 06 Sept 2007
Located next to Raffles Hotel in Seah Street, the 40-room Naumi will offer mostly deluxe suites costing $500 a night - about the same as a room at a five-star hotel. But Naumi is a different proposition. Owned by the Hind Group, its managing director Surya Jhunjhnuwala says that the hotel will provide ‘highly personalised’ service.
The initial staff-to-guest ratio is one to one - and Mr Jhunjhnuwala still expects this to increase. His family owned the Imperial Hotel off River Valley Road between 1977 and 1999 before selling it. ‘We have always been keen to get back into the hospitality business,’ he says.
This time, Hind Group wants to focus on the boutique segment. Mr Jhunjhnuwala says that the target is to have hotels with a total of 1,000 rooms within three years, with the ideal size for a Naumi hotel being 30-70 rooms.
The group will look for opportunities in China, Vietnam, Hong Kong and Thailand and is still looking in Singapore. But it is not likely to find anything for $18 million - the price it paid for the Metropole Hotel in April 2006, which was converted into Naumi in eight months.
Indeed, it could sell the hotel now and make a tidy profit. But Mr Jhunjhnuwala says that although there is ‘a price for everything’, selling Naumi is not the plan at present. The old Metropole Hotel was gutted and given a hip makeover by award-winning local firm Eco-id Architecture and Design at a cost of more than $10 million or an estimated $250,000 a room.
Naumi is by no means Singapore’s first boutique hotel. Establishments such as The Scarlet, Hotel 1929 and the New Majestic Hotel are already popular with the fashion-conscious crowd.
But Mr Jhunjhnuwala says Naumi is less ‘thematic’. He is confident it will provide at least a 5 per cent return on investment.
Source : Business Times - 06 Sept 2007
Saturday, September 1, 2007
Demand for Link Hotel rooms even before official opening highlights room crunch
Demand for Link Hotel rooms even before official opening highlights room crunch
By Tania Tan
IT IS barely finished, but already, nine in 10 rooms at the Link Hotel have been taken.
There is still some way to go before its official opening next month and the second block is still being refurbished, but the hotel’s guests are just glad to have rooms to lay down their heads at night.
Of the 150 rooms now available in the Tiong Bahru Road hotel, converted from the old Singapore Improvement Trust flats, 130 have been let out.
The demand for these rooms, priced at between $260 and $600 a night, kicked in even before the hotel’s soft opening in mid-July, and it has consistently filled its rooms since then.
This thirst for rooms is just a sign of the boom times for hotels.
The hotel’s executive assistant manager James Ting said travel agents were already calling him in June to secure rooms for their clients.
‘There was definitely a big demand. The travel agents needed rooms,’ he said.
And no wonder. July saw a record-breaking 951,000 visitors vying for the just over 36,000 hotel rooms available here.
Mr Ting, noting an increasing number of guests from India and China, said: ‘They travel within Asia because it’s familiar territory, and cheaper than Europe or America, so there’s bigger demand now.’
Industry players have already been warning of a room crunch.
Mr Robert Khoo, who heads the National Association of Travel Agents Singapore, has in fact gone as far as to say that the shortage in rooms could put a dampener on growth in tourist arrivals.
The Singapore Tourism Board has said it is working with the Urban Redevelopment Authority to monitor the supply of hotel rooms.
Since last August, contracts for nine hotel sites, which should yield about 3,100 rooms, have been awarded, among them, the Link Hotel.
And with next year’s Formula One races expected to draw some 80,000 to 90,000 more revellers here, the room shortage situation is beginning to look acute.
Yesterday, the Minister of Trade & Industry Lim Hng Kiang said that the Government was aware of the situation and was ‘looking at it’.
The agencies would release land, and with room rates going up, there would be more interest from developers, he said.
Source : Straits Times - 01 sept 2007
By Tania Tan
IT IS barely finished, but already, nine in 10 rooms at the Link Hotel have been taken.
There is still some way to go before its official opening next month and the second block is still being refurbished, but the hotel’s guests are just glad to have rooms to lay down their heads at night.
Of the 150 rooms now available in the Tiong Bahru Road hotel, converted from the old Singapore Improvement Trust flats, 130 have been let out.
The demand for these rooms, priced at between $260 and $600 a night, kicked in even before the hotel’s soft opening in mid-July, and it has consistently filled its rooms since then.
This thirst for rooms is just a sign of the boom times for hotels.
The hotel’s executive assistant manager James Ting said travel agents were already calling him in June to secure rooms for their clients.
‘There was definitely a big demand. The travel agents needed rooms,’ he said.
And no wonder. July saw a record-breaking 951,000 visitors vying for the just over 36,000 hotel rooms available here.
Mr Ting, noting an increasing number of guests from India and China, said: ‘They travel within Asia because it’s familiar territory, and cheaper than Europe or America, so there’s bigger demand now.’
Industry players have already been warning of a room crunch.
Mr Robert Khoo, who heads the National Association of Travel Agents Singapore, has in fact gone as far as to say that the shortage in rooms could put a dampener on growth in tourist arrivals.
The Singapore Tourism Board has said it is working with the Urban Redevelopment Authority to monitor the supply of hotel rooms.
Since last August, contracts for nine hotel sites, which should yield about 3,100 rooms, have been awarded, among them, the Link Hotel.
And with next year’s Formula One races expected to draw some 80,000 to 90,000 more revellers here, the room shortage situation is beginning to look acute.
Yesterday, the Minister of Trade & Industry Lim Hng Kiang said that the Government was aware of the situation and was ‘looking at it’.
The agencies would release land, and with room rates going up, there would be more interest from developers, he said.
Source : Straits Times - 01 sept 2007
Opportunities abound for foreign investors
Opportunities abound for foreign investors
Digg this story Add to your del.icio.us account
VIETNAM has become a magnet for many foreign investors keen to partake in its booming economic growth. From the construction firms to property developers and service industry players, opportunities abound for those looking to get on the “Vietnam economic bandwagon”.
Its membership in the World Trade Organisation on Jan 11 certainly bolstered its standing and marketability in the international arena and the country can look forward to more foreign direct investment (FDI) and expanding trade opportunities.
Vietnam's economy has enjoyed an annual growth of more than 7% since 2001 while its per capita income has doubled to about US$540 in the past decade. Its 8% economic growth last year was the second highest in East Asia, after China, while its annual FDI of over US$10bil, or 4% as a percentage of gross domestic product, is the highest in the region.
The demographics of Vietnam is equally promising – 60% of its population of 86 million are aged 35 and below, and this provides a ready source for the labour and bustling consumer market.
Steven Chu
Foreign investors are encouraged by the continuous improvements they see taking place in the regulatory environment for FDIs.
Gamuda Land Sdn Bhd chief operating officer Steven Chu said although most of the ongoing projects in Vietnam were financed by overseas development assistance facilities, the Vietnamese government was encouraging more private foreign investments.
“It is becoming increasingly easier to do business in Vietnam. In the property sector, we understand the government is looking into more liberalised measures to allow foreign ownership of properties,” he said.
Chu said Gamuda was serious in establishing a long-term business relationship in Vietnam and had set up offices in Hanoi and Ho Chi Minh City.
A significant part of Gamuda's target market for the Yen So Park project in Hanoi will be the expatriate community although they will be on long-term leases since foreigners are not yet allowed to buy property in Vietnam.
Chu said Gamuda would also be targeting the three million Viet Kieu community, or Vietnamese who had fled the country during the Vietnam War and had made good for themselves in their adopted countries, mostly in the US, Europe and Australia. The Viet Kieus are believed to repatriate some US$3bil to US$4bil a year back to Vietnam.
The property sector alone offers immense potential for Malaysian companies to export their expertise.
Rising urbanisation will create a growing demand for companies with expertise in township development and niche lifestyle projects.
The country's growing middle class also means that condominium living and gated and guarded housing will become increasingly popular.
Vietnam faces a severe shortage of quality residential products, Grade A office space, hotel rooms, shop offices and retail centres.
According to international property consultancy Chesterton Petty, the key drivers for the country's real estate market include overseas remittances of US$4bil a year, emerging condominium markets in key cities, conspicuous consumption and changing lifestyles, and the people's lack of access to international real estate investments.
The areas of opportunities include lifestyle residences, condominiums, offices and serviced apartments to cater to an expanding middle class and growing foreign investors and expatriates.
The price of residential properties in Vietnam has escalated to US$1,900 per sq m in Hanoi and US$2,900 in Ho Chi Minh City.
“The average price for luxury apartments is US$1,100 to US$1,900 per sq m and the occupancy rate in serviced apartments has stabilised at around 95%,” Chesterton said in a recent report on Vietnam.
A strong and stable demand for Grade A office space and a limited supply of such property have driven vacancy to less than 1%.
The retail and hotel sectors also offer good growth potential.
Rental for street-front stores in Hanoi are reaching US$120 per sq m with international branded tenants vying for space in high traffic areas.
The largest shopping centre is only 13,000 sq m with rent at US$88 per sq m. Meanwhile, supermarkets are still in short supply. The total retail sales in Vietnam have reached US$20bil last year, a 20.7% increase year-on-year.
Meanwhile, the hotel sector is also seeing much growing potential, going forward. According to the World Travel and Tourism Commission, Vietnam ranks fourth among the top 10 global tourist destinations and the number of tourists is expected to reach 25 million by 2010. – By ANGIE NG
Digg this story Add to your del.icio.us account
VIETNAM has become a magnet for many foreign investors keen to partake in its booming economic growth. From the construction firms to property developers and service industry players, opportunities abound for those looking to get on the “Vietnam economic bandwagon”.
Its membership in the World Trade Organisation on Jan 11 certainly bolstered its standing and marketability in the international arena and the country can look forward to more foreign direct investment (FDI) and expanding trade opportunities.
Vietnam's economy has enjoyed an annual growth of more than 7% since 2001 while its per capita income has doubled to about US$540 in the past decade. Its 8% economic growth last year was the second highest in East Asia, after China, while its annual FDI of over US$10bil, or 4% as a percentage of gross domestic product, is the highest in the region.
The demographics of Vietnam is equally promising – 60% of its population of 86 million are aged 35 and below, and this provides a ready source for the labour and bustling consumer market.
Steven Chu
Foreign investors are encouraged by the continuous improvements they see taking place in the regulatory environment for FDIs.
Gamuda Land Sdn Bhd chief operating officer Steven Chu said although most of the ongoing projects in Vietnam were financed by overseas development assistance facilities, the Vietnamese government was encouraging more private foreign investments.
“It is becoming increasingly easier to do business in Vietnam. In the property sector, we understand the government is looking into more liberalised measures to allow foreign ownership of properties,” he said.
Chu said Gamuda was serious in establishing a long-term business relationship in Vietnam and had set up offices in Hanoi and Ho Chi Minh City.
A significant part of Gamuda's target market for the Yen So Park project in Hanoi will be the expatriate community although they will be on long-term leases since foreigners are not yet allowed to buy property in Vietnam.
Chu said Gamuda would also be targeting the three million Viet Kieu community, or Vietnamese who had fled the country during the Vietnam War and had made good for themselves in their adopted countries, mostly in the US, Europe and Australia. The Viet Kieus are believed to repatriate some US$3bil to US$4bil a year back to Vietnam.
The property sector alone offers immense potential for Malaysian companies to export their expertise.
Rising urbanisation will create a growing demand for companies with expertise in township development and niche lifestyle projects.
The country's growing middle class also means that condominium living and gated and guarded housing will become increasingly popular.
Vietnam faces a severe shortage of quality residential products, Grade A office space, hotel rooms, shop offices and retail centres.
According to international property consultancy Chesterton Petty, the key drivers for the country's real estate market include overseas remittances of US$4bil a year, emerging condominium markets in key cities, conspicuous consumption and changing lifestyles, and the people's lack of access to international real estate investments.
The areas of opportunities include lifestyle residences, condominiums, offices and serviced apartments to cater to an expanding middle class and growing foreign investors and expatriates.
The price of residential properties in Vietnam has escalated to US$1,900 per sq m in Hanoi and US$2,900 in Ho Chi Minh City.
“The average price for luxury apartments is US$1,100 to US$1,900 per sq m and the occupancy rate in serviced apartments has stabilised at around 95%,” Chesterton said in a recent report on Vietnam.
A strong and stable demand for Grade A office space and a limited supply of such property have driven vacancy to less than 1%.
The retail and hotel sectors also offer good growth potential.
Rental for street-front stores in Hanoi are reaching US$120 per sq m with international branded tenants vying for space in high traffic areas.
The largest shopping centre is only 13,000 sq m with rent at US$88 per sq m. Meanwhile, supermarkets are still in short supply. The total retail sales in Vietnam have reached US$20bil last year, a 20.7% increase year-on-year.
Meanwhile, the hotel sector is also seeing much growing potential, going forward. According to the World Travel and Tourism Commission, Vietnam ranks fourth among the top 10 global tourist destinations and the number of tourists is expected to reach 25 million by 2010. – By ANGIE NG
Saturday, August 25, 2007
Mitre Hotel.
HE WAS the last man standing in the way of the sale of the Mitre Hotel.
Now, 62-year-old Chiam Heng Hsien, who is the only living partner of the hotel, will not only have to move out, but he will also not get any compensation for being evicted.
The dilapidated hotel, which stopped operating in 2002, is a well-known landmark, sitting on 40,000 sq ft of prime land in Killiney Road.
It has also been at the centre of a legal saga that started back in 1996.
Then, Mr Chiam fought off a move by his cousin, Mr Chiam Heng Luan, and the latter’s daughter - who had obtained a court order to sell the site.
However, the High Court did not decree that the hotel had to be vacated before it could be sold.
Then, the highest bid came up to $73 million, but Mr Chiam Heng Hsien, who owns 10 per cent of the property, resisted.
He said he would move out only if the hotel proprietors were paid $21 million.
The deal fell through.
Mr Chiam continued staying in the hotel until early last year, when the family went back to court.
By the time the hearing began in April this year, he was the only one holding out against all the other 11 owners of the site, who wanted it to be sold.
Justice Judith Prakash ruled against Mr Chiam, ordering the property to be sold via public tender. Mr Chiam was also ordered to clear out of the premises at least four weeks before the sale is completed.
Justice Prakash said in April that she would decide later whether the hotel proprietors should be compensated for being kicked out.
On Tuesday, in a 52-page written judgment, she ruled that the proprietors were not entitled to compensation.
The judge also gave her reasons for deciding that the property was to be sold.
In court, Mr Chiam, represented by Mr Andre Maniam, had claimed that a 1948 agreement allowed the hotel proprietors to stay on the property for as long as they wished.
Alternatively, he argued, the proprietors should be awarded compensation if they move out.
But the plaintiffs, through Senior Counsel Harpreet Singh Nehal, argued that there was no such agreement.
In her judgment, Justice Prakash agreed that, apart from Mr Chiam’s testimony, there was no other evidence that there was such an agreement for an indefinite stay.
However, she found that there was an intention for the proprietors to occupy the property for as long as it was running a hotel business.
She found that once the proprietors stopped running the hotel business, they could no longer prevent the land owners from demanding the return of the property.
Therefore, she ordered that all 12 owners of the property pay for all property tax and maintenance expenditure incurred by the proprietors since the beginning of 2003, when the hotel lost its operating licence. The unspecified amount is to be paid from the sales proceeds of the property.
Source : Straits Times - 24 Aug 2007
Now, 62-year-old Chiam Heng Hsien, who is the only living partner of the hotel, will not only have to move out, but he will also not get any compensation for being evicted.
The dilapidated hotel, which stopped operating in 2002, is a well-known landmark, sitting on 40,000 sq ft of prime land in Killiney Road.
It has also been at the centre of a legal saga that started back in 1996.
Then, Mr Chiam fought off a move by his cousin, Mr Chiam Heng Luan, and the latter’s daughter - who had obtained a court order to sell the site.
However, the High Court did not decree that the hotel had to be vacated before it could be sold.
Then, the highest bid came up to $73 million, but Mr Chiam Heng Hsien, who owns 10 per cent of the property, resisted.
He said he would move out only if the hotel proprietors were paid $21 million.
The deal fell through.
Mr Chiam continued staying in the hotel until early last year, when the family went back to court.
By the time the hearing began in April this year, he was the only one holding out against all the other 11 owners of the site, who wanted it to be sold.
Justice Judith Prakash ruled against Mr Chiam, ordering the property to be sold via public tender. Mr Chiam was also ordered to clear out of the premises at least four weeks before the sale is completed.
Justice Prakash said in April that she would decide later whether the hotel proprietors should be compensated for being kicked out.
On Tuesday, in a 52-page written judgment, she ruled that the proprietors were not entitled to compensation.
The judge also gave her reasons for deciding that the property was to be sold.
In court, Mr Chiam, represented by Mr Andre Maniam, had claimed that a 1948 agreement allowed the hotel proprietors to stay on the property for as long as they wished.
Alternatively, he argued, the proprietors should be awarded compensation if they move out.
But the plaintiffs, through Senior Counsel Harpreet Singh Nehal, argued that there was no such agreement.
In her judgment, Justice Prakash agreed that, apart from Mr Chiam’s testimony, there was no other evidence that there was such an agreement for an indefinite stay.
However, she found that there was an intention for the proprietors to occupy the property for as long as it was running a hotel business.
She found that once the proprietors stopped running the hotel business, they could no longer prevent the land owners from demanding the return of the property.
Therefore, she ordered that all 12 owners of the property pay for all property tax and maintenance expenditure incurred by the proprietors since the beginning of 2003, when the hotel lost its operating licence. The unspecified amount is to be paid from the sales proceeds of the property.
Source : Straits Times - 24 Aug 2007
Friday, August 17, 2007
Government Land Sales Programme for the second half of this year is to be at the junction of Jalan Bukit Merah and Alexandra Road.
The first of the four hotel sites to be put on the reserve list of the Government Land Sales Programme for the second half of this year is to be at the junction of Jalan Bukit Merah and Alexandra Road.
The site has an area of 0.79 ha and a maximum permissible gross floor area of 22,249 square metres (239,486 sq ft).
A spokesman for the Urban Redevelopment Authority (URA) said it has already received some market interest for the site, which is close to Mount Faber and Sentosa.
The URA said: ‘The area is of a mixed-use character and there is no change in planning intentions in the near future.’
Cushman & Wakefield managing director Donald Han says that, as the site is near Alexandra Hospital, a hotel there might attract ‘medical tourists’.
At present, the area is predominantly an industrial and car showroom enclave.
‘There’s a price to everything and hotel sites are well in demand now - regardless to location,’ Mr Han said.
He thinks the site could sell for between $400 to $450 per square foot per plot ratio (psf ppr), putting it in the $100 million range.
He pointed out that hotels near regional hubs are needed to help commercial growth as part of URA’s decentralisation strategy.
Mr Han reckons a 3-star hotel with up to 400 rooms would be feasible. Rates would be below $180 per night.
Highlighting that the current $220 per night average room rate has caused some concern within the tourism industry, Mr Han said: ‘More suburban or 3-star hotels may be needed to keep hotel rates affordable, particularly for the budget-conscious tourists.’
Knight Frank director (research and consultancy) Nicholas Mak believes interest for the site is not likely to come from any of the big players.
‘If any developer were to be interested in this site, they are likely to be small developers or hotel operators such as Fragrance Land or Hotel 81,’ he said.
For the first half of the year, URA released three hotel sites on the reserve list.
In July, a hotel site in the Tanjong Pagar area sold for $97.07 million or $562 psf ppr.
Source : Business Times - 17 Aug 2007
The site has an area of 0.79 ha and a maximum permissible gross floor area of 22,249 square metres (239,486 sq ft).
A spokesman for the Urban Redevelopment Authority (URA) said it has already received some market interest for the site, which is close to Mount Faber and Sentosa.
The URA said: ‘The area is of a mixed-use character and there is no change in planning intentions in the near future.’
Cushman & Wakefield managing director Donald Han says that, as the site is near Alexandra Hospital, a hotel there might attract ‘medical tourists’.
At present, the area is predominantly an industrial and car showroom enclave.
‘There’s a price to everything and hotel sites are well in demand now - regardless to location,’ Mr Han said.
He thinks the site could sell for between $400 to $450 per square foot per plot ratio (psf ppr), putting it in the $100 million range.
He pointed out that hotels near regional hubs are needed to help commercial growth as part of URA’s decentralisation strategy.
Mr Han reckons a 3-star hotel with up to 400 rooms would be feasible. Rates would be below $180 per night.
Highlighting that the current $220 per night average room rate has caused some concern within the tourism industry, Mr Han said: ‘More suburban or 3-star hotels may be needed to keep hotel rates affordable, particularly for the budget-conscious tourists.’
Knight Frank director (research and consultancy) Nicholas Mak believes interest for the site is not likely to come from any of the big players.
‘If any developer were to be interested in this site, they are likely to be small developers or hotel operators such as Fragrance Land or Hotel 81,’ he said.
For the first half of the year, URA released three hotel sites on the reserve list.
In July, a hotel site in the Tanjong Pagar area sold for $97.07 million or $562 psf ppr.
Source : Business Times - 17 Aug 2007
Wednesday, August 1, 2007
UOL in deal to acquire Pan Pacific hotel brand
UOL in deal to acquire Pan Pacific hotel brand
Posted August 1st, 2007
UOL Group has entered into a sales-and-purchase agreement for the Pan Pacific hotel brand.
The acquisition will fast-track the UOL Group’s strategy to become a key player in hotel management in and beyond the Asia-Pacific region. The deal brings the Pan Pacific group’s 12 hotels in the United States, Canada and the region into the UOL portfolio, adding 3,800 rooms.
The Pan Pacific group’s suite of hotels is especially strong in the region with eight of the 12 located in key Asian gateway cities like Yokohama, Jakarta, Bangkok, Manila and Singapore.
‘Strategically, the acquisition provides us with a distinct two-tier structure that will enhance both the Pan Pacific brand and the Parkroyal brand,’ said UOL chief executive Gwee Liang Kheng. The brand acquisition takes the total number of hotel properties under the UOL umbrella to 26, which includes properties operated under leading international hotel chain names like Sheraton, Sofitel and Crowne Plaza.
The purchase also boosts UOL’s room capacity significantly. ‘From a business standpoint, we now have a total of more than 8,900 rooms,’ said Mr Gwee.
Source : Business Times
Posted August 1st, 2007
UOL Group has entered into a sales-and-purchase agreement for the Pan Pacific hotel brand.
The acquisition will fast-track the UOL Group’s strategy to become a key player in hotel management in and beyond the Asia-Pacific region. The deal brings the Pan Pacific group’s 12 hotels in the United States, Canada and the region into the UOL portfolio, adding 3,800 rooms.
The Pan Pacific group’s suite of hotels is especially strong in the region with eight of the 12 located in key Asian gateway cities like Yokohama, Jakarta, Bangkok, Manila and Singapore.
‘Strategically, the acquisition provides us with a distinct two-tier structure that will enhance both the Pan Pacific brand and the Parkroyal brand,’ said UOL chief executive Gwee Liang Kheng. The brand acquisition takes the total number of hotel properties under the UOL umbrella to 26, which includes properties operated under leading international hotel chain names like Sheraton, Sofitel and Crowne Plaza.
The purchase also boosts UOL’s room capacity significantly. ‘From a business standpoint, we now have a total of more than 8,900 rooms,’ said Mr Gwee.
Source : Business Times
Subscribe to:
Posts (Atom)
