GLOBAL Premium Hotels, the operator of Fragrance Hotels, the second largest budget hotel chain in Singapore, is setting its sights on opening its first properties outside Singapore and has plans to open 200 to 300 rooms per annum, either in the city state or abroad.
“We have not firmed up plans as we are still at the evaluation stage, but we are open to expanding to regional destinations including Malaysia, Indonesia and potentially Myanmar and Vietnam,” said Eddie Lim, CEO, Global Premium Hotels, which had recently secured funds totalling S$292 million (US$236.53) on the back of its IPO in April.
Lim said that the group was keen to export both its economy Fragrance and midscale Parc Sovereign brands abroad.
He said: “At the moment, we are looking at various ownership models including joint ventures, acquisitions and management contracts to grow our portfolio regionally.”
Despite the group’s foreign ambitions, Lim insisted that the group remained firmly focused on Singapore, which he believes still offers ample opportunities.
“With 17 million arrivals forecast for 2015, and with the hotel supply rate anticipated to lag behind this growth, there’s still a lot of room for economy and mid-tier hotels to make their mark in Singapore. Global Premium Hotels has an advantage in this respect owing to the intimate knowledge we have of the (Singapore) market,” said Lim.
A second Parc Sovereign, which will have around 270 rooms, is due to open in Singapore by end-2014 in the Lavender district.
