AUSTRALIA-based Staywell Hotel Group is pressing on with its move to expand into Singapore, despite the challenge of finding a suitable site to build.
Speaking to TTG e-daily, CEO Simon Wan said that he was delighted with the performance of Staywelll’s Park Regis Singapore since it opened last November. Occupancy for the property is now up to 90 per cent, and Wan is bullish about the hotel group’s future prospects.
He said: “Singapore is a good starting point for any hotel wishing to break into the South-east Asian market. It is our strategic gateway to the rest of the region.”
Wan explained that Staywell had tendered for a site behind the Park Regis along Havelock Road in June last year as part of its expansion plans. But they were outbid by RB Capital, which plans on constructing a Holiday Inn Express.
He said that the company was currently studying various sites. He did not reveal which sites had caught the group’s attention, but said that it had to be big enough to accommodate at least 300 rooms.
While Wan confirmed that the company was also looking to expand its three-star Leisure Inn brand in Malaysia and Thailand, it may not do the same for Singapore.
“The high cost of land is putting a lot of pressure on us to ensure that we secure a good financial return on our investment. We keep asking ourselves, ‘What is the risk and return in Singapore compared to other investment opportunities outside Singapore?’ Staywell needs to examine both the Singapore hotel market and the financial feasibility of opening a hotel from scratch.”
He added: “There is definitely an obvious gap in Singapore for three-star leisure properties to cater to tourists to diversify the Singapore market.”
