Expectations ran high following the announcement of the inaugural Singapore Grand Prix, the second of two street races and the series' first ever night event.

Three months to the race weekend, however, only one out of 11 hotels along the downtown track is fully booked.

In response, industry players are packaging their rates with incentives such as a free breakfast and free shuttle services.

According to The Straits Times, average room rates have also fallen from over $1500 a night to around $1300 for trackside hotels.

Others have lowered the minimum number of nights guests have to stay.

With hopes of potential profit now slipping away, those in the tourism trade point an accusatory finger at the hotels for their exorbitant room rates, while hoteliers in return fault the high government levy.

Currently, trackside and non-trackside hotels have to pay 30 per cent and 20 per cent in taxes on their room revenue respectively, for the five nights surrounding the race.

Still, the hoteliers' concerns may be unfounded, as a report on other Formula One host cities reveal that bookings can come in as late as 30 days before the event date.