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20-11-13, 23:36
http://www.businesstimes.com.sg/archive/tuesday/premium/companies/others/hiap-hoe-upbeat-about-zhongshan-parks-competitive-edge-20131119
Published November 19, 2013
Hiap Hoe upbeat about Zhongshan Park's competitive edge
By ong chor hao [email protected]
A PIPELINE of new hotels over the next two years will put pressure on revenue and labour at Hiap Hoe's Zhongshan Park integrated development but the company remains bullish about prospects.
Executives spoke yesterday at the official opening for the $300 million project in Balestier comprising the Days and Ramada hotels, the 50,000 square feet Zhongshan Mall and the 13-storey Hiap Hoe Office Tower.
Tony Cousens, the general manager for the two hotels, noted that there is expected to be more than 5,000 new hotel rooms in Singapore over the next two years.
"For sure it puts pressure on RevPar (revenue per available room) because with those extra rooms the inbound tourists or business travellers have more choices, and it will have an impact on labour, because the labour is also squeezed."
But he saw opportunity in the three- and four-star hotel category, where the two hotels competes, as customers and corporations look at rationalising costs.
"We got the smart basics, we just don't have the frills and pain, (where) instead of $200 you are paying $400-500 in the core of the city," Mr Cousens said.
He also mentioned that Days and Ramada hotels have received positive feedback from online sites.
"And I believe as this development gets better and more known, that we will certainly perform, every month, better than the first year, I should say."
Teo Ho Beng, group CEO at Hiap Hoe, also pointed to the government's ability to be forward looking, such as the decision to build up Terminal 4 at Changi Airport, as a positive sign for the hospitality industry.
He added that Zhongshan Park has had some early success. The office tower has been fully leased, and the mall is over 90 per cent leased. RevPar and occupancy rates for the hotels were not disclosed, but Mr Teo said occupancies were "steady".
Hiap Hoe has plans to replicate the integrated development concept overseas, having acquired three sites in Melbourne, Australia, in the past few months. There are opportunities for hotels at all three plots.
"As you are aware, the Singapore market is now getting very tough, margins (have) become very thin," Mr Teo said, explaining the expansion overseas.
The company is also looking at areas such as London, and for opportunities in the United States and New Zealand, he said.
But that does not mean that it is giving up on the Singapore market.
Assuming the price is right, Mr Teo said that "we will still continue in Singapore and develop more properties, depending on the timing and what kind of opportunities we have here".
Published November 19, 2013
Hiap Hoe upbeat about Zhongshan Park's competitive edge
By ong chor hao [email protected]
A PIPELINE of new hotels over the next two years will put pressure on revenue and labour at Hiap Hoe's Zhongshan Park integrated development but the company remains bullish about prospects.
Executives spoke yesterday at the official opening for the $300 million project in Balestier comprising the Days and Ramada hotels, the 50,000 square feet Zhongshan Mall and the 13-storey Hiap Hoe Office Tower.
Tony Cousens, the general manager for the two hotels, noted that there is expected to be more than 5,000 new hotel rooms in Singapore over the next two years.
"For sure it puts pressure on RevPar (revenue per available room) because with those extra rooms the inbound tourists or business travellers have more choices, and it will have an impact on labour, because the labour is also squeezed."
But he saw opportunity in the three- and four-star hotel category, where the two hotels competes, as customers and corporations look at rationalising costs.
"We got the smart basics, we just don't have the frills and pain, (where) instead of $200 you are paying $400-500 in the core of the city," Mr Cousens said.
He also mentioned that Days and Ramada hotels have received positive feedback from online sites.
"And I believe as this development gets better and more known, that we will certainly perform, every month, better than the first year, I should say."
Teo Ho Beng, group CEO at Hiap Hoe, also pointed to the government's ability to be forward looking, such as the decision to build up Terminal 4 at Changi Airport, as a positive sign for the hospitality industry.
He added that Zhongshan Park has had some early success. The office tower has been fully leased, and the mall is over 90 per cent leased. RevPar and occupancy rates for the hotels were not disclosed, but Mr Teo said occupancies were "steady".
Hiap Hoe has plans to replicate the integrated development concept overseas, having acquired three sites in Melbourne, Australia, in the past few months. There are opportunities for hotels at all three plots.
"As you are aware, the Singapore market is now getting very tough, margins (have) become very thin," Mr Teo said, explaining the expansion overseas.
The company is also looking at areas such as London, and for opportunities in the United States and New Zealand, he said.
But that does not mean that it is giving up on the Singapore market.
Assuming the price is right, Mr Teo said that "we will still continue in Singapore and develop more properties, depending on the timing and what kind of opportunities we have here".