SINGAPORE (EDGEPROP) - Last September, Far East Hospitality launched its fourth hotel on Sentosa Island, the 191-key Oasia Resort Sentosa. The opening of the resort marked the debut of Oasia Spa. Positioned as a wellness retreat, Oasia Resort Sentosa brings Far East Hospitality’s portfolio of hotels on the island to four with a total of 1,030 keys.

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“We can’t be all things to all people,” says Arthur Kiong, CEO of Far East Hospitality. The company’s 606-key Village Hotel Sentosa is positioned as a hotel for families and tour groups. The Outpost, which has 193 keys, is the first “couples-only resort” in Sentosa. Meanwhile, The Barracks Hotel, with only 40 rooms, caters to those who appreciate heritage and exclusivity. 

Prior to the opening of Oasia Resort Sentosa, what had been missing in the company’s Sentosa portfolio was a wellness spa. “It gave us the opportunity to create a wellness retreat,” adds Kiong. 

Kiong: We want to pivot towards "quality tourism" (Credit: Samuel Isaac Chua/ The Edge Singapore)

Besides tourists, Oasia Spa caters to Singaporeans who want a quick wellness getaway. “We created this concept in order to bring Singaporeans back to Sentosa,” says Kiong. Oasia Resort Sentosa saw a boost from staycations during the pandemic, and “did extremely well”, he adds. 

When Singapore opened its borders in late April, Kiong had anticipated a lull in business at Oasia Resort Sentosa, with a dip in staycations prior to the return of the international travellers. What he had not expect was new business in the form of corporate retreats, long-term corporate stays of several months, and convalescing mothers. 

Kiong attributes the demand to the positioning of the property and its focus on wellness and sustainability. It is also just 11 minutes by car from the CBD, he adds. “Sentosa has achieved its objective of not being disenfranchised from Singaporeans and changed its perception that it’s only for tourists,” he says. 

Entrance to the restaurant at Oasia Resort Sentosa (Credit: Samuel Isaac Chua/ The Edge Singapore)

Last month, Far East Hospitality also announced that it will be bringing over two hotel brands from Australia, namely Vibe Hotels and Adina, and rebranding two of its existing properties in Singapore, namely The Elizabeth Hotel and the Regency House (serviced residence). 

Vibe Hotels and Adina are part of the hotel brands in Australia managed by Far East Hospitality in a joint venture with TFE Hotels (Toga Far East Hotels). “We want to pivot towards quality tourism,” says Kiong. This is in response to “a palpable shift” in its customer base. Pre-pandemic, Australia contributed to 7% of Far East Hospitality’s hotel guests, according to nationality. China was the biggest market, with nearly 20%. 

Post-pandemic, the markets that generate the highest average room rates are the “Western markets”, for instance, Australia, Germany, the UK and the US. Demand from Australia to Singapore has surged to almost 25% of forward flight bookings, says Kiong. Travellers from Australia are not just willing to spend more on accommodation, but also to splurge on experiences, from dining to leisure activities. “That is why we are bringing the Australian brands to Singapore,” he reasons. 

The lounge of the new Adina Serviced Apartment Singapore Orchard, with 88-apartments, that is scheduled to open in July (Credit: Far East Hospitality)

Prior to the refurbishment and repositioning of The Elizabeth Hotel at Mount Elizabeth, just off Orchard Road, the average room rate was less than $200 a night. It will be rebranded as the 256-key Vibe Hotel Singapore Orchard and is scheduled to open in 4Q2022. It will be the first Vibe Hotel outside of Australia, and is likely to see room rates of $250 to $280 a night. 

Regency House on Penang Road, just off Orchard Road, has traditionally seen rates of about $280 a night. Post-refurbishment as the new 88-key Adina serviced residences, scheduled to open in July, Kiong expects to see a 10% uplift in room rates.

He believes these new Australian brands will have “a halo effect” on the rest of the portfolio of hotels and serviced residences in Singapore. Likewise, TFE Hotels launched Far East Hospitality’s Quincy brand in Melbourne, Australia, with the opening of the 241-key Quincy Melbourne in March 2021. “It is regarded as one of the best hotels in Melbourne,” says Kiong. 

A deluxe room at the 256-key Vibe Hotel Singapore Orchard that is scheduled to open by the end of the year (Credit: Far East Hospitality)

Kiong intends to introduce more Far East brands to the Australian market. Meanwhile, he sees the potential of introducing the Adina and Vibe Hotel brands to other Asian markets, primarily Japan and Vietnam, followed by Malaysia. 

He sees the opportunity for Singapore to position itself as a destination by “twinning Sentosa and the city”, offering a diverse range of experiences. “Post-pandemic, you want to limit the number of countries you visit because the regulations can change on a dime and the safety policies are also uncertain,” he notes. Hence, he sees Singapore positioned as “a mono destination”. 

In the past, the average length of stay in Singapore was just over three nights. Kiong believes Singapore can be “a five-night destination”. “You can have three nights in Sentosa and two nights in the city or vice versa, in order to enjoy a diversity of experiences,” he says. 

Reception of the flagship Oasia Spa at Oasia Resort Sentosa (Credit: Samuel Isaac Chua/ The Edge Singapore)

Far East Hospitality is already providing that “twinning” experience with its properties — for instance, Oasia Downtown in Tanjong Pagar with Oasia Resort Sentosa. “You can experience two nights in the city and then transfer to Sentosa for three nights,” he says. He also sees another possible twinning of the Quincy Hotel at Mount Elizabeth, just off Orchard Road, with Outpost Hotel in Sentosa, which appeals to honeymooners and young couples. Another possible twinning is The Clan Hotel at Cross Street in the CBD-Chinatown area and The Barracks Hotel in Sentosa. 

In the pipeline are new brands, for instance at the upcoming integrated development at Jalan Anak Bukit by Far East Organization. The new development will have a mix of residences, commercial office and retail space, as well as a hospitality offering. It will be linked directly to Beauty World MRT Station. The project is likely to be launched sometime in 2H2022. (Find Singapore commercial properties with our commercial directory)

At One Holland Village, a mixed-use development by Far East Organization, Sino Land and Sekisui House, Far East Hospitality will be showcasing Quincy House, its flagship serviced residences under the Quincy brand. The 255-key serviced apartments will be mainly one- and two-bedroom suites, with generous communal areas and facilities, from the living room, outdoor terrace, barbeque area, indoor gym to an open kitchen and laundry room. 

At One Holland Village, a mixed-use development by Far East Organization, Sino Land and Sekisui House, Far East Hospitality will be showcasing Quincy House, its flagship serviced residences under the Quincy brand (Photo: Samuel Isaac Chua/EdgeProp Singapore)

“The whole idea of the Quincy brand is about socialising — whether you’re travelling solo or as a couple, and it’s designed for those who want to meet people,” says Kiong. “Even doing laundry will be a social activity as we have designed a beautiful laundry room.”

Above Quincy House are the premium apartments, with larger one- and two-bedroom units as well as dual-key apartments. “One Holland Village is a very exciting development in terms of the composition of its retail, residential and F&B offerings,” notes Kiong. “And it’s juxtaposed against the eclectic appeal of Holland Village.” 

Even though the hospitality sector is expected to see recovery this year, it is not expected to return to pre-pandemic levels, in light of China’s zero-Covid strategy and Russia’s ongoing war with Ukraine. However, Kiong is optimistic that surprising new markets could open up, which he had not anticipated in the pandemic or even pre-pandemic era, for instance the corporate long-term stays and convalescing mothers at Oasia Resort Sentosa. 

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Kiong: The pandemic brings us to the cusp of the third tourism evolution (Photo: Samuel Isaac Chua/EdgeProp Singapore)

SINGAPORE (EDGEPROP) - The quick return to tighter restrictions on July 22 highlights the importance of improvisation in business, which Arthur Kiong, CEO of Far East Hospitality, seems to have a knack for. (See also: Far East Hospitality Trust secures first sustainability-linked loan worth $125 mil from OCBC)

A former radio DJ in the 1980s, Kiong recounts an incident where he had to improvise an hour-long radio show with no preparation. He had arrived at the studio of the Singapore Broadcasting Corp (now MediaCorp) one day at 7.40am to find the door to his office locked. He ran over to the security guard to get the key, as he needed to retrieve a bag of letters, from people who had written in with their song dedications, for his programme that morning. But the guard refused to give him the key, saying it was “against protocol”. With just three minutes to air time, Kiong dashed into the studio, breathless and perspiring. “I had no letters, I was unprepared and didn’t even have my records,” he relates. “I had to make up this entire hour-long programme with nothing in hand.” 

A hotelier for the past three decades, Kiong has the benefit of hindsight too. He sees the pandemic as an opportunity for Far East Hospitality to create new brand experiences, refurbish and renew older properties, expand the group’s footprint in the region, create new business streams as well as attract and retain talent. “The pandemic has brought us to the cusp of the third tourism evolution,” he says. 

The 324-key The Clan Hotel located on Cross Street opened on March 1 this year (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Singapore’s first tourism evolution was in the 70s and 80s, and it was the “me-too era”. Orchard Road, with its shopping malls and five-star hotels, was Singapore’s answer to Tokyo’s Ginza district, Hong Kong’s Tsim Sha Tsui, Paris’ Champs-Élysées and New York’s Fifth Avenue, Kiong relates.  

The period from the late 1980s to 2000s marked the second tourism evolution or the “me-too-but-better”, says Kiong. “It was taking tested ideas from elsewhere and executing them better,” he adds. He points to the Singapore Flyer and the two integrated resorts as examples. 

“This third evolution is about ‘quality tourism’, and it’s where we are at now,” says Kiong. “It’s about offering unique and compelling experiences to draw visitors. It’s the ‘me-only proposition’.”

View of the CBD and Tanjong Pagar area from the rooftop of The Clan Hotel (Photo: Samuel Isaac Chua/EdgeProp Singapore)

The pandemic has forced the hotel industry to change, says Kiong. Total hotel room stock in Singapore stood at 69,367 keys as at end-2019, according to Colliers International in its 1Q2021 Hotel Insights report. Prior to the pandemic, Singapore drew 19.1 visitors in 2019, according to Singapore Tourism Board (STB). Average occupancy rate (AOR) for hotels was 86.9% with average room rate (ARR) at $221. 

Last year, the total number of visitors shrank 85.7% to 2.74 million. AOR contracted 30.2% y-o-y to 56.7%, with ARR at $152. In 1H2021, visitor arrivals slid to 118,660, a 95.5% y-o-y plunge from 1H2020. AOR decreased further to 44.94%, while ARR dipped to $147.43, according to STB data.

Singapore’s five key markets in terms of tourist arrivals are: China, India, Indonesia, Australia and Malaysia. Still, there are impediments, notes Kiong. “Even if our population is fully vaccinated, will the other countries allow their nationals to travel abroad? That’s the first impediment,” he says. “The second impediment is Singapore’s own travel restrictions, which have to be more judicious.” 

The Clan Hotel was voted No. 1 among 367 hotels in Singapore, according to TripAdvisor  (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Most countries have to focus on domestic tourism for now. Singapore is no different. 

For Far East Hospitality, the domestic market represents just 7% to 10% of its overall business, even if the proportion of staycations has increased, says Kiong. 

However, he feels that staycations are not the solution for the post-pandemic era, especially for Singapore. “In fact, your best clients during the pandemic may  disappear post-pandemic because this is the group of people with a penchant for travel and for new experiences,” he says. “As soon as they can travel abroad, they will.” 

Far East Hospitality is banking on the resurgence of medical tourism. “Singapore is known for being clean and green,” says Kiong. “If one had to do a medical procedure, Singapore would be on the radar.” He sees opportunity in offering accommodation for such visitors during the convalescence period. 

The Clan Hotel captures the mood and history of the Chinese migrant clans (Photo: Samuel Isaac Chua/EdgeProp Singapore)

With recovery in the tourism industry still uncertain in the short term, what is clear is that the supply of hotel rooms currently outstrips demand. “We need to be able to offer something that is unique and compelling to be able to draw visitors,” says Kiong. 

This is where he sees the value in creating new brands. In Singapore, The Clan is a new brand that Far East Hospitality has launched. “We thought of ‘The Settlement’ or ‘The Crossing’, given its location at Cross Street, one of the oldest streets in Singapore,” says Kiong. “But we decided on ‘The Clan’ based on the history of the clans.” 

The clan associations in Singapore were established by Chinese migrants in the 1800s to help new immigrants to find shelter and work, and build business relationships. The clans were organised according to their hometowns or provinces, such as Fujian, Guangdong and Hainan. “Using the inspiration of the clans, we wanted to create a hotel that told the Singapore story and the whole concept of the clans, from the product to service offering,” says Kiong. 

“By doing so, we unlock the value of not just the real estate but the entire precinct,” he adds, noting the nearby boutique hotel, Amoy Hotel on Telok Ayer Street, which is part of the Far East Square mixed-use commercial development. Close by in Tanjong Pagar is another hotel, Oasia Downtown, managed by Far East Hospitality.

The boutique hotel, Amoy at Telok Ayer Street, has just 37 rooms and is located at Far East Square, just across the road from The Clan Hotel Hotel (Photo: Far East Hospitality)

In 2019, Far East Hospitality opened three hotels in Sentosa, namely Village Hotel Sentosa, The Outpost Hotel and The Barracks Hotel, with a combined total of 839 keys. Each hotel caters to a different market segment: Village Hotel is designed for families and tour groups; The Outpost is an adults-only hotel aimed at those who prefer exclusivity; while the third and most upscale, The Barracks, “provides a heritage experience, with personalised service”, says Kiong. The Barracks was ranked first among 17 hotels on Sentosa on TripAdvisor. 

 Slated to open in 2H2021 is the 191-key Oasia Resort Sentosa, which will cater to the wellness market, which is a new segment, says Kiong. “We have guests staying at The Barracks or The Outpost who will want to enjoy a spa treatment too,” he adds. “And Oasia Resort will cater for that.” Oasia Resort’s spa will be managed by Far East Hospitality, and marks the group’s entry into the spa business, which will provide a new revenue stream. 

Oasia Resort is also Far East Hospitality’s fourth hotel on Sentosa Island, bringing its total hotel rooms there to 1,030. This is an example of the group’s strategy of scaling up within the same locale. By creating different brand experiences catering to different market segments, the group is able to reap the benefits that come with economies of scale. 

The Barracks Hotel has been voted the top hotel in Sentosa, according to TripAdvisor (Photo: Far East Hospitality)

“Centralisation allows us to manage our costs more efficiently,” says Kiong. He points to the group’s ratio of staff per hotel room is 0.2, compared to the industry average is 0.4 to 0.5. “This cost saving is passed to the hotel owner, providing them with a reasonable return,” he adds. 

Managing costs has become a priority for hotel players too. This is because while room rates stagnate, hoteliers face rising cost pressures. Automation requires investment in technology, which is expensive, especially the initial capital expenditure, explains Kiong. The pandemic has also highlighted the risks pegged to a reliance on foreign workers.

“In order to attract locals to the hospitality industry, it’s not just the salary level that has to increase, but the job scope has to be redesigned to enable the staff to become more productive,” notes Kiong. “One must also provide career paths for them to grow with the group.”

Orchard Rendezvous Hotel, located at the junction of Tanglin Road and Orchard Road will be refurbished, feature a new façade, and will also be rebranded (Photo: Far East Hospitality)

Far East Hospitality is a 70:30 joint venture formed in 2013 between Far East Orchard (a listed company under privately held property group, Far East Organization, controlled by the family of the late tycoon Ng Teng Fong) and The Straits Trading Co, majority owned by the Tecity Group, an organisation founded by the late banker and philanthropist Tan Chin Tuan.

Legacy properties within Far East Hospitality’s portfolio that are being refurbished and will be rebranded include The Elizabeth Hotel at Mount Elizabeth and Regency House on Penang Road, both located in the heart of Orchard Road. Likewise, Far East Plaza, which opened in 1983 on Scotts Road, just off Orchard Road, will see its serviced apartments refurbished as well. Orchard Rendezvous Hotel, located on the corner of the prime Orchard Road and Tanglin Road, will undergo an extensive makeover, as will Village Residence West Coast, which sits above West Coast Plaza on West Coast Road. 

“During this pandemic, we have quite an ambitious plan to remake our hospitality offering,” says Kiong. 

Far East Village Hotel Yokohama, opened on June 1, is the second hotel in Japan by Far East Hospitality (Photo: Far East Hospitality)

Right now, Far East Hospitality has more than 16,500 rooms across 100 hotels and serviced apartments. It has a presence in eight countries — Australia, Denmark, Germany, Hungary, Japan, Malaysia, New Zealand and Singapore. Kiong aims to ramp up its portfolio to 25,000 rooms by 2025. That is a 20% growth rate, notes Kiong. “While aggressive, it would put us among the top 50 hotel companies in the world,” he says. 

In 1H2021, the group opened three new hotels across Asia Pacific: the 324-key The Clan Hotel in Singapore on March 1; the 241-key Quincy Hotel Melbourne in Australia on March 12; and the 227-key Far East Village Hotel Yokohama in Japan on June 1. 

Far East Hospitality intends to continue expanding its footprint in the region, especially in Australia, Japan and Vietnam. Far East Village Hotel Yokohama marks the group’s second hotel in Japan. Its first is the 306-key Village Hotel Ariake Tokyo. The property is a joint venture between Far East Hospitality and Far East Organization. 

A deluxe room of the Quincy Hotel Melbourne that opened in March this year (Photo: Far East Hospitality)

In Australia, Far East Hospitality formed a 50:50 joint venture with Toga Group to create Toga Far East Hotels (TFE Hotels) in 2014. TFE Hotels is now one of the biggest hotel owners and operators in Australia. Brands include Adina Hotels, Vibe Hotels, Travelodge Hotels and TFE Collection. There are plans to bring some of the Australian brands to Singapore and vice versa, as in the case of Quincy Hotel Melbourne, says Kiong. 

In 2019, Far East Hospitality made its foray into Vietnam, after signing a hotel management and technical service agreement with Five Elements Development, a real estate development company with a hospitality focus in 2019. The group is managing two boutique hotels, namely Lê Công Kiều Hotel and Ngô Văn Năm Hotel in Ho Chi Minh City. They have since been rebranded Hotel Rêve and Suzu Hotel respectively. 

The Quincy Hotel Melboune opened in March this year (Photo: Far East Hospitality)

In April this year, Far East Hospitality signed a strategic alliance agreement with Artotel Group, a boutique hospitality and lifestyle group in Indonesia, whose businesses include F&B, event management and merchandising. The move was to tap domestic tourism in Indonesia, which has a population of 270.6 million as at 2019. “We see potential in domestic tourism, given its huge middle-class population,” says Kiong. 

Artotel caters to the economy and mid-tier hotel segments, which Far East Hospitality currently doesn’t have a presence in. “We cater to a more upscale segment; hence, our businesses are complementary,” says Kiong. 

He believes this pandemic is opening up new opportunities for the group’s expansion. 

With 40 exclusive rooms, The Barracks Hotel Sentosa is designed by architect and director Laurence Liew of Arc Studio Architecture + Urbanism (Credit: Samuel Isaac Chua/ The Edge Singapore)

SINGAPORE (EDGEPROP) - On Dec 1, international hospitality owner and operator Far East Hospitality will open its third hotel on Sentosa, The Barracks Hotel Sentosa. This follows the launch of its flagship 606-key Village Hotel Sentosa that targets families, and its 193-key The Outpost Hotel Sentosa which caters exclusively to adults, particularly couples.

The refurbished The Barracks Hotel Sentosa takes up two out of the six conserved heritage buildings, which made up a British military outpost back in 1904. One other building will be used as an Events Centre, while the remaining three are to be the Mess Hall, which is partly tenanted currently. The tenants include Japanese restaurant Hidemasa By Hide Yamamoto, Royal Taj which serves up an Indian fare, 7-Eleven, and Eurasian restaurant Quentin’s. 

Just like Far East Hospitality’s two other hotels on Sentosa, The Barracks Hotel Sentosa is designed by architect and director Laurence Liew of Arc Studio Architecture + Urbanism, with the interior design of the rooms conceived by KKS International. Conceptualised in 2014, the restoration and internal alteration works for the hotel started at end-2015, while the groundworks itself began in mid-2018. 

The columns, as well as the doors, are conserved (Credit: Samuel Isaac Chua/ The Edge Singapore)

The Barracks Hotel Sentosa offers “an ultra-exclusive” experience that is “tailor-made for the discerning traveller seeking timeless luxury and service with attention to detail”, notes Far East Hospitality in a press release. 

Of the 40 available rooms across two storeys, 33 are 312 sq ft premier rooms; six are 635 sq ft suites with a king-size bed each; and the last is a 312 sq ft accessible room fitted with a queen-size bed. In each premier room are a king or twin bedroom with an en suite bathroom, and an outdoor patio for those on the ground floor or a balcony for those on the second floor. The patio comes with direct access to the pool. For the suites, semi-private jacuzzi access is available.

As part of the hotel’s personalised Equerry Concierge Service, guests will have access to round-the-clock assistance, including in-room dining. Private tours, which are exclusively designed for guests, are also available. Nightly room rates start from $500.

There are only six 635 sq ft suites with king-size beds at The Barracks Hotel Sentosa (Credit: Samuel Isaac Chua/ The Edge Singapore)

According to interior designer Kunio Iwata of KKS International, the design was “based on [the] footprint of the [hotel’s] rich history”. “Since the hotel is housed in a designated conserved building, there are more opportunities for the design to be more experiential with the raw and rustic feel of the existing site,” he says.

To that end, the rooms feature the stand-alone bathtub from Australian brand Apaiser, which is dark-coloured and stone-like, and made to contrast with the white marble floor. The shell-shaped basin from Hansgrohe is in white porcelain, with red gold fittings. Together, these elements give the rooms a “timeless [yet] modern” look, notes Iwata. 

The standalone bathtub is from Australian brand Apaiser (Credit: Samuel Isaac Chua/ The Edge Singapore)

The shell-shaped basin in white porcelain by Hansgrohe gives a timeless yet modern look (Credit: Far East Hospitality)

Each suite also features a vintage leather sofa from British brand Chester Field, while soft touches are added to the décor in all the rooms, which includes artworks and accessories reminiscent of vintage objects.

The minibar and the Nespresso machine on a vintage-looking cabinet (Credit: Far East Hospitality)

At The Barracks Hotel Sentosa, the moulded columns, traditional timber louvered windows, and moulded timber doors are all in their original conserved state. New features have been added, like the timber feature wall at the head of each bed, and rustic rounded door handles. The divider, added to separate the bedroom and the bathroom, is a timber louvered sliding door that is coated with white paint.

The bedside table in the Premier Room (Credit: Far East Hospitality)

As a member of the Small Luxury Hotels of the World (SLH), The Barracks Hotel Sentosa joins SLH’s global portfolio of over 500 hotels. SLH is present in more than 80 countries worldwide. 

The study desk in the premier room (Credit: Far East Hospitality)

“The unique offerings of The Barracks Hotel Sentosa would be an exciting addition for our members,” says Mark Wong, vice president, Asia Pacific, at SLH. “Apart from its luxurious décor and exclusive activities for guests, the hotel’s efforts in preserving the heritage of the place are in line with SLH’s vision of creating a sustainable future where people explore the world with intention, experience its intensity and protect its integrity.”

SINGAPORE (EDGEPROP) - International hospitality owner and operator Far East Hospitality will add The Clan Hotel, its latest brand, to its portfolio. The Clan Hotel’s first luxury hotel in Singapore is slated to launch in 2Q2020. 

“To meet the growing momentum of experience-driven travel, we challenged ourselves to introduce a new perspective on luxury with The Clan Hotel,” says Arthur Kiong, CEO, Far East Hospitality. He adds that “through carefully curated touchpoints, we want to connect more travellers to unique experiences that deliver both a deeper cultural connection and a strong sense of place”.

The 324-key hotel comprises four room types, namely the Superior room, the Deluxe room, the Premier and Grand Premier room, which are part of the MASTER Series rooms that offer highly customised services. The services include immediate room check-in services at the airport with limousine transfer,  a welcome tea ceremony with Chinese tea and traditional snacks, and turndown services with flower tea and essential oil rollers.

The rooms range from 226 sq ft for a Superior room; to 258 sq ft to 290 sq ft for a Deluxe room; about 334 sq ft to 244 sq ft for a Premier room; and 388 sq ft for a Grand Premier room. 

The guestrooms are located on levels 6 to 29, while the gym and pool are located on level 30.

Located along Cross Street, The Clan Hotel Singapore is a one- to six-minute walk from Telok Ayer MRT Station on the Downtown Line, China Square Central, Chinatown, Lau Pa Sat, and Raffles Place MRT Station.

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