The world’s largest hotel company Wyndham Group is starting operations in Singapore by managing two new hotels at Balestier Road.
Wyndham will partner a joint venture (JV) between local property developer Hiap Hoe and Superbowl Holdings.
This is also the JV’s foray into the hospitality sector.
The busy Balestier Road area is fast becoming home to more hotels.
The latest two will be managed by the Wyndham Group.
There will be about 10 hotels in the area eventually, but Wyndham said there will still be demand for its mid-scale hotels.
They will cater mainly to medical tourists, due to their proximity to nearby hospitals.
Thomas Monahan, EVP, International Development, Wyndham Group, said: “Singapore is a critical market place in Asia. It is a showcase market place. It is where every hotel company wants to be, and there is certainly a shortage of room inventory in the three- and four-star market place for international brands.
“Our brands are a perfect fit for the market place, and they will help us grow in the Asia Pacific. If you look at the room inventory, most of it exists in the upscale (segment) and so these two properties will be positioned in the midscale, three- and four-star, where there is a lack of inventory in that market place.”
Wyndham is planning to use Singapore as a base to build up its Asian presence.
The two new hotels will operate under the Ramada and Days Inn brands, and will each have about 400 rooms.
They will be separated by a public park, which is being developed as part of a government condition attached to the land development.
Besides the hotels, there will also be an adjacent office block and an integrated hub for dining and entertainment.
This is the first time that Hiap Hoe and Super Bowl are going into the hospitality business.
It is part of the duo’s strategy to seek more steady growth.
Teo Ho Beng, managing director, Hiap Hoe Group, said: “The hotel will give us a very good recurring income, whereas for property development, you will be more dependent on the property cycle.
“Our location is near to the medical facilities that are coming up in this area, and we will be able to cater to some of this outpatient requirement that comes here for consultation.”
The total cost of the development is about S$300 million.
Both hotels are expected to be open in 2014.
Source : Channel NewsAsia – 27 Jan 2010