Growing middle-class market

'We are forecasting 80 per cent occupancy by August,' he adds.

Aqueen

Ms Judy Lum, group vice-president of sales and marketing at inbound travel agency Tour East, says that despite lower rates at four- and five-star hotels, many of her European and Asian clients are still looking for the best value, staying at mid-range hotels such as Golden Landmark along Victoria Street and Bayview Hotel along Bencoolen Street, whose prices start from about $140 a night.

No wonder more affordable hotels are in the offing. One is the 208-room Value Hotel in Balestier Road, which is expected to open by the end of this month. Rooms come with toiletries and cable TV. Some will even have DVD players.

A check with the Accounting and Corporate Regulatory Authority showed that the Value hotel is owned by the budget accommodation chain Hotel 81, also known for its rent-by-the-hour rooms.

Its spokesman, who did not want to be named, declined to give more details, except to say that 'we are giving clients great value for money with room rates from $69 a night'.

Over at the $78-a-night Aqueen, general manager Leong says the chain is launching another hotel with 105 rooms in Lavender Street in the second half of this year. And it will open another two hotels in Paya Lebar and Jalan Besar in the next two years.

The Ibis, too, is set to open another branch at Balestier Road in 2011. Ms Carolyn Low, product director of online hotel booking website wotif.com, says its outlook is rosy.

She adds that Singapore can 'sustain more (mid-priced hotels) in the future, especially with the proactive initiatives taken by the STB to attract both leisure travellers and conferences to the city'.

Mid-priced hotels are an important sector in the hotel industry, says real estate consultancy firm Knight Frank.

Its director of consultancy and research, Mr Nicholas Mak, says there is a growing middle-class in Asia and Singapore is pitching for their business.

'Accordingly, we need mid-range hotels to cater to these people.'

Mr Robert Khoo, CEO of the National Association of Travel Agents Singapore (Natas) hopes for more mid-range 'tourist-class' hotels to spring up on the outskirts of the city.

He says: 'If tourism continues to grow and hits STB's target of 17 million tourists by 2015, then there won't be enough tourist-class hotels.'

taysc@sph.com

This article was first published in The Straits Times.

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