SINGAPORE: After opening the doors The Clan Hotel in the central business district Last month, Far East Hospitality was already preparing for another launch this year.
The upcoming property marks the company’s foray into the resort and spa category in Singapore. Despite the COVID-19 pandemic, plans are being implemented.
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“The Oasia Resort Sentosa is slated to open in the second half of 2021,” said managing director Arthur Kiong.
The Oasia Resort Sentosa will open its doors in the second quarter of 2021. (Photo: Far East Hospitality)
Ascott, CapitaLand’s wholly owned accommodation division, also has new properties in the line this year.
The Citadines Connect City Center Singapore with 172 rooms in Dhoby Ghaut and a 240-unit property in Farrer Park will be presented for the first time in October under the co-living brand lyf in December.
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Development of an additional Lyf property in One-North is expected to be completed in the fourth quarter.
These are not the only hotel and serviced residence operators defying the COVID-19 pandemic with new offers. Last year there were several newcomers to the Singapore market such as the Parkroyal Collection Marina Bay, the Dusit Thani Laguna in Singapore, the Duxton Reserve and the Mint Hotel in the One Farrer Hotel.
According to Zhang Jiahao, Associate Director of CBRE Hotels Asia-Pacific, launches will continue into the next year and beyond, including new hotel brands like Edition by Marriott with 204 rooms, Pullman Singapore with 350 rooms and Mondrian Singapore with 303 rooms.
These plans reflect hoteliers’ continued confidence in the Singapore market, he said.
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“While global travel and tourism have now stalled, we expect demand to normalize again in the medium term, and it is expected to be stronger than the days before COVID due to the pent-up demand and strong support and support Singapore government efforts for industry, “he added.
“Therefore, it is believed that the proposed supply is appropriate and necessary to meet this expected increase in demand.”
Mr. Zhang noted that the new offering includes a range of medium to luxury hotels that will appeal to a wide variety of travelers.
READ: Sentosa will welcome a new hotel on the site of the former Le Meridien in 2021
“BEST TIME” TO OPEN
While it may seem counterintuitive to start a business at a time when the travel industry is on the verge of stalling, Govinda Singh, executive director of valuation and advisory services at Colliers, told CNA that “now is the best time for hoteliers” at the opening is “. .
This is because new hotels take time to get up and running.
“For hotels, it takes about six months to resolve teething troubles from before opening to opening, and it’s another three to four months from there to officially opening,” said Singh.
Corporate contracts and group bookings, which generate the bulk of hotel bookings, also take time to negotiate and set up, he added.
“Hotels need time to get up and running. During the entry into the market, the business will be weak anyway. So why not open it when the market is weak? When the markets recover, teething troubles will be resolved and you will be ready to welcome your guests. “
Far East Hospitality’s Mr Kiong said that while the pandemic slowed business, it gave the company time to improve its product and service offerings and to try new processes and technologies.
“Executing our plans during the pandemic gives the operations team more time – a luxury we cannot afford under normal operating conditions – to optimize all areas and be ready when international travel fully returns. The timing also forced us to hone the marketing of our hotels, ”he said.
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With this, Far East Hospitality has implemented all opening plans in Singapore and major overseas markets such as Australia, Japan and Vietnam. In addition, several properties in its portfolio are currently being renovated and renamed.
Mr Kiong said the new hotels “did well” despite the pandemic. These include Singapore’s Clan Hotel and Barracks Hotels Sentosa, which “have achieved better than expected operating results,” he added.
EXPLORE THE PANDEMIC
According to the Singapore Tourism Board (STB), the average hotel occupancy in February was 41.7 percent, compared with 43.8 percent in January and 49.6 percent in the same period last year. The occupancy rate was around 83 percent in January of last year before the coronavirus pandemic wiped out the tourism industry.
Industry experts said that after the introduction of SingapoRediscovers vouchers, hotels were largely kept afloat by government demand as home notification means for travelers as well as domestic stay bookings.
Mr. Ervin Yeo, general manager for Southeast Asia at The Ascott, said its properties have managed to maintain “robust occupancy”.
For example, Ascott Orchard Singapore and lyf Funan Singapore were almost 100 percent occupied during the holiday season from December 24th to January 1st. Currently around half of the guests in these two serviced residences are corporate groups and long-term guests of between one and 24 months.
READ: Changes in technology and sustainability offer long-term opportunities for the tourism sector: Chan Chun Sing
Ascott has also adapted its products and services to new trends.
Aside from overnight packages and contactless services, attempts have been made to capitalize on the teleworking trend by allowing people to book their suites as an alternative to working from home. The Work in Residence initiative has received “positive feedback” since it was launched last August, Yeo said.
CHANGE FOR POST-PANDEMIC WORLD
Industry players and observers said the worst of the pandemic was over and a “gradual recovery” could be in sight this year.
“Assuming a vaccine is effectively rolled out by mid-2021, we expect Singapore to introduce safer lanes including Green Lanes, Periodic Commuting Arrangement and Air Travel Pass with countries that have weathered the pandemic situation well. Ultimately, this will translate into a gradual recovery in international visitors to Singapore in the later half of 2021, ”said Zhang.
The introduction of tourism vouchers since late last year should also help increase occupancy and room rates, he added.
READ: Comment: What Singapore Tourism Vouchers Are Really All About
However, transformation for a post-pandemic world will be key. The STB did at its annual industry conference earlier this month urged the industry to keep an eye on trends including technological innovation, sustainability and holistic wellbeing.
Industry players who spoke to CNA about this story said they are already doing it.
“As Singapore prepares to reposition itself for shifts in demand and new travel trends, holistic wellbeing will be a key strategy,” said Kiong, who noted the company will also focus on the “upper midsize and upper-end market” his brand Oasia.
The upcoming Oasia Resort Sentosa, for example, will focus on wellness and appeal to health-conscious guests. In addition to spa treatments, guests can expect healthy eating, fitness programs, wellness diaries, self-care checklists, and access to a collection of guided meditation audio during their stay.
The newly opened The Clan Hotel also tries to combine modern luxury with nostalgia and history from its location near Chinatown. The company understands that “hotels must compete as part of a larger concept of the district or proposal, rather than as a separate building made up of rooms,” said Kiong.
“Hotels in the traditional style are no longer enough. In the future we can expect more innovative hospitality concepts that better activate the area and attract quality tourism, ”he added.
Development of the Lyf One-North Singapore with 324 units is expected to be completed in the fourth quarter of 2021. (Photo: The Ascott)
For Ascott, the new Lyf property in One-North will have several environmental and sustainability features, such as: B. an energy monitoring system, motion sensors with two technologies and light-emitting diode lights, with which energy savings of more than 30 percent can be achieved.
The property was Green Mark certified by local authorities last year, Ascott said.
Green is also used to create social spaces, such as an expansive green roof to reduce the heat extracted from the building and create energy efficient and sustainable development, Yeo said.
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