Marketing of Hotel Properties in Singapore

Marketing of Hotel Properties in Singapore

Hotel developments must be licensed by the Hotels Licensing Board (HLB), and applications to the board are required to comply with the requirements of the relevant government agencies.

A licence will be issued only if the application meets all requirements stipulated in the Hotels Act. However, HLB can also revoke the licence if there is any deviation from the hotel licensing conditions, such as evidence of vice activity in the hotel.

The URA had granted approval for a hotel use at 1-9 Eng Hoon Street, as it is located in a mixed-use area where there are existing hotel developments in the vicinity.

Traders Hotel Singapore
Traders Hotel Singapore | Source

Prospect of Hotel Business in Singapore

With the advent of 2 Mega Integrated Resorts (IRs), all eyes are trained on the prospect of leisure & hospitality businesses.

However, hoteliers throughout the world are unanimously expecting declines in business performance for 2009 .

Global economic situation is the #1 factor negatively influencing the market, followed by Influenza A (H1N1) virus started in April 2009 from Mexico, global stock market trends, and local economic trends.

Hotels are unique real estate investment because public companies can buy into hotel ownership or hotel management.

Many famous chains have moved into management contracts as opposed to owner-ship, e.g. Sheraton and Westin are now being managed by public companies; the Marriott would initially develop a hotel and manage it, but then sell the property yet keep managerial control.

How Hotels are Ranked in Singapore
Hotel star ratings are systems that rank hotels according to quality. Star rating systems are intended to serve as guidelines for consumers that are making hotel reservations.

Indeed, star ratings can be helpful when booking hotels rooms, but keep in mind that there is no standardized star rating system. In Europe, hotels are usually ranked on a scale from 1~4 stars, with four stars being the highest rating possible. In the United States, hotels are generally ranked on a scale from 1~5 stars, sometimes using half star increments.

In Singapore, STPB does not practice star rating for hotels. Hotels are actually self-rated.


Categories of Hotels in Singapore

In Singapore, Hotels are categories as :
(a) Luxury or 5-star hotels
(b) Business hotels or 3/4-star hotels
(c) 6-star hotels - come with butlers service
(d) Budget hotels
(e) Boutique hotels
(f) Boarding houses

(a) Luxury or 5-Star Hotels
They have all the full facilities that include 1st class restaurants, bars, swimming pool, tennis courts, putting green and business centre, e.g. Goodwood Park Hotel, Grand Hyatt S’pore, Hilton International S’pore, Mandarin S’pore Hotel and Shangri-La Hotel, etc.

(b) Business or 3/4-Star Hotels
Do not have all the full facilities and room rates are generally < 5-star hotel. We can find them along Havelock Road or at the fringe of CBD, e.g. Carlton Hotel, Furama, Merchant Court Hotel, Excelsior Hotel, Gooden Landmark, Amara Hotel; Garden Hotel, Allson Hotel, Hotel Grand Central, Hotel Miramar S’pore, Lion City Hotel, Ibis Singapore on Bencoolen and Paramount Hotel, etc..

(c) 6-Star Hotels
Like 5-star hotels, they have full facilities butprovide butler service, e.g. Raffles Hotel, The Fullerton S’pore, Ritz-carton Millenia and The St. Regis Singapore, etc..

(d) Budget Hotels
These are no-frill type hotels mainly found within the vicinity of Little India (Cactus Hotel, Dickson Court Hotel), Serangoon Rd, Joo Chiat (Hotel 81), Changi (Tristar Inn) &r Geylang (The Fragrance Hotel) areas. These small hotels usually have 20 ~100 rooms to cater for those tourists on a shoestring budget and businessman, who are cost conscious

These are no-frill type hotels mainly found within the vicinity of Little India (Cactus Hotel, Dickson Court Hotel), Serangoon Rd, Joo Chiat (Hotel 81), Changi (Tristar Inn) &r Geylang (The Fragrance Hotel) areas.

These small hotels usually have 20 ~100 rooms to cater for those tourists on a shoestring budget and businessman, who are cost conscious.

(e) Boutique Hotels
It differentiate themselves from larger chain or branded hotels by providing an exceptional and personalized level of accommodation, services and facilities, e.g. Quincy, Hotel Re! and The Scarlet, etc.

Many are converted from old shop houses. The numbers of rooms are limited, e.g. Chinatown (Chinatown Hotel, Keong Saik Hotel and Berjaya Hotel, etc.), Tiong Bahru (Link Hotel) and Joo Chiat Roads.

(f) Boarding Houses
Cater for very cost conscious tourists or hitch hikers. Lodgers pay a few dollars a day for a bed space or in a shared room with a double-decker bed, e.g., Summer Tavern (Carpenter St), Betel Box Backpacker Hostel (Joo Chiat Rd), A Travellers Rest–Stop (Teck Lim Rd) and The Inn Crowd Backpacker Hostel2 (Dunlop St).


How Hotels are Priced

  1. No. of Guest rooms (Q) x Room rates (P)
  2. Management contract
  3. Food & Beverage (F&B) outlets
  4. Function rooms
  5. Shopping and Commercial Spaces
  6. Car parking facilities
  7. Guests Profile
  8. Occupancy rates (%)
  9. State of repair of equipment, furniture, fittings and fixtures
  10. Other facilities/services
    Tour desk, swimming pool, business centre, gymnasium, spa, ticketing office, limousine/reservation/jockey service
  11. Tourist Industry
    • Mushrooming of Budget Airlines
    • No. of tourists visiting S’pore
    • Profile of tourists

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