Far East Hospitality repositions assets, focuses on ‘quality tourism’
By Hailey Yu
/ EdgeProp Singapore |
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.
“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.
Market shift
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%.
‘Halo effect’ of Australian brands
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)
‘Twinning’ of the city and Sentosa
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.
New brands
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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