FRASERS Hospitality is working on a new brand to tap the short-stay market, even as it faces increasing competition from hotel chains that have started to gnaw at its market share with expansion into the apartment sector.
Unlike the Singapore-based operator’s existing properties, the new brand would operate more like a hotel, rather than a serviced residence, explained Frasers Hospitality CEO, Choe Peng Sum. This also means that all of them would have hotel licences.
Choe explained that the move would help “close the gap” between overnight hotel stays and longer-term apartment rental. Currently, many of Frasers’ guests stay put for months or even years, he said.
“You already have your Marriott and Four Seasons (that have entered the extended-stay market). More will come. We see this as a window to gain a bigger footprint as a dedicated player,” he added.
Properties under the new brand will be equipped with meeting facilities – but not ballrooms – and likely an all-day dining restaurant.
Rates will be “a notch below compared to that of Fraser-branded properties”, as it would be more closely associated with a four-star level of service, said Choe.
The number of initial properties has yet to be finalised, and an announcement of the brand will be made soon.