The economic rebound as well as travel demand have boosted hotel room rates, as hoteliers shift gears in the hope of a better take-up during this year’s Formula One (F1) Grand Prix season.
At Marina Bay Sands (MBS), which has added 2,560 rooms to the Marina Bay site this year, room prices during the race period will start from $599 per night, according to its website. This price is on a par with, if not lower, compared with the majority of the 13 trackside hotels.
“It will definitely impact the market if MBS charges even marginally lower,” said a general manager who refused to be named.
Other trackside hotels feel that they can compete on other points aside from pricing, such as proximity to the race track.
“Although there has been an increase in the supply of rooms within the Marina Bay area, Swissotel The Stamford and Fairmont Singapore… offer guests unparalleled views of the actual race right in the comfort of their room balconies,” said Koo Sok Hoon, associate director of marketing communications at the two hotels. A three-night package for a room with a track view at these hotels will cost around $3,200.
With the rebound in the tourism industry, hoteliers are reasonably optimistic that the better economy will push up bookings.
Room rates at the Pan Pacific, which is located along the track, start from $700, almost 30 percent higher than in 2009. However, a three-night stay in some room categories is being offered at a better rate of $560 per night.
“We have received some bookings and there are enquiries coming in on a daily basis,” said Cheryl Ng, public relations manager at Pan Pacific. “We are optimistic that the hotel will be busy during the race weekend in September.”
At the Marina Mandarin, prices for deluxe rooms start from $650 with a minimum booking of two nights, slightly up from its early-bird price of $600 in 2009.
“We are doing better compared to last year,” said a spokesperson for Marina Mandarin. “We anticipate our occupancy to be about 90 percent or better over the F1 weekend.”
With the more robust economy, the Four Seasons hopes to have better yields for this year, according to a hotel spokesperson. Room rates at the hotel start at $865 with a minimum stay of three nights, higher than the $670 in 2009.
Room prices at the Rendezvous Hotel have also gone up by around 25 percent to $350 – with no minimum stay.
However, not all hotels have increased their prices.
Room rates at the Ritz Carlton have kept to the same level as in 2009, with prices starting at $1,870.
Meanwhile, the Mandarin Oriental is offering an early-bird rate of $1,200 until August 15. Last year, its room prices started at $1,500.
“We are optimistic about the occupancy during the F1 season as the majority of our guests are from corporate companies,” said Kelly Tan, communications director at Mandarin Hotel.
According to Singapore GP (SGP), the promoter of the race, demand for corporate hospitality suites has increased this year.
”Corporate hospitality tickets continue to sell strongly,” said Darren Chen, director of sales at SGP.