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The chain, which operates three hotels in Singapore, hopes to run at least eight more properties within five years ranging from three- to five-star hotels.  

Its Singapore-based senior vice-president of development and asset management in the Asia-Pacific, Mr Anthony South, outlined to The Straits Times the group’s five-year wishlist: a second five-star InterContinental hotel, one or two more five-star Crowne Plaza hotels and two additional four-star Holiday Inn hotels.

The group will also introduce to Singapore its three-star chain, Express by Holiday Inn. It has plans for at least four such hotels but may operate up to eight.

IHG is one of the world’s largest chains, with 3,600 hotels across the globe, including 160 in the Asia-Pacific. In Singapore, it operates the InterContinental Hotel Singapore in Bugis, Holiday Inn Parkview in Cavenagh Road and Holiday Inn Atrium in Outram Road.

A fourth - Crowne Plaza Changi Airport Hotel - will open its doors in early 2008.

Mr South outlined his group’s local strategy following the Government’s recent decision to make available eight new sites that can be used to build hotels.

That is the largest number of hotel sites ever put up on the land release programme at one go - a move prompted by the aim to double visitor arrivals here to 17 million by 2015. Singapore has about 37,000 hotel rooms, but could see a further 10,000 rooms in four to six years, industry sources have said.

IHG said it would be keen to operate hotels built on the new sites. But as the group now manages properties and no longer acquires them, it will have to work with developers and other property investors if it wants to increase its presence here.

IHG is expanding at a time when room and occupancy rates are rising on the back of healthier economic growth in Asia.

Visitors from places such as China, India, Malaysia and Indonesia are likely to continue to outpace arrivals from long-haul markets, said Mr David Ling, the managing director of hospitality consultants HVS International. And a significant number of these regional visitors will look for accommodation in the mid-tier category, he added.

IHG’s Express by Holiday Inn brand is thus ideal for Singapore, given the lack of mid-tier branded hotels, he added. Occupancy rates for mid-tier hotels reached 86 per cent last year, compared with 78 per cent for upper-tier hotels.

Express targets both budget business and leisure travellers, pitching itself between budget brands and four-star hotels. It offers complimentary breakfast, broadband Internet access and rooms equipped with a work desk and safe.

Having started only in 1991, the Express brand now boasts 1,604 hotels worldwide, including four in the Asia-Pacific.

A key concern for IHG, however, is whether visitor arrivals will grow fast enough to absorb the room supply. ‘Everybody wants to see the industry grow. But the pace at which it grows is important because the worst thing that could happen is that a whole lot of hotels will open at the same time, in advance of a whole lot of demand,’ said Mr South.

This could weigh down room rates, he added.

Some in the industry have voiced the same concern and have pointed out that local five-star hotel rates remain comparatively lower than those in cities such as Hong Kong and Tokyo.

But with Singapore’s tourism goals in place, this worry has not deterred hotel operators from making their own ambitious plans.

Operators such as Accor and the Park Hotel Group have also said they are keen to expand here.

‘The hotel market will be more diversified, providing a wider spectrum of products and brands ranging from those at the budget end to luxury ones and boutique developments,’ said Mr Ling.

Source:  The Straits Times, Singapore