Nice hotel, very quiet neighbours

Source : Business Times – 8 Aug 2009

Aqueen sets up stall right next to Singapore Casket

IS it possible to sleep well knowing that your neighbours are also resting – not just peacefully but in peace? This is what guests will soon find out when they check in at Aqueen Hotel Lavender, which is right next to Singapore Casket.

The 105-room hotel on Lavender Street will be opening its doors in September. Its owner is Crescendas Group, which owns another three Aqueen sites.

Times have changed, said Crescendas CEO Lawrence Leow, when BT asked if travellers would be nervous about the funeral service provider nearby. ‘In this modern world … I’m not affected by the fact that it’s next to the Casket.’

In fact, the location could open the door to unique opportunities. Cushman & Wakefield managing director Donald Han noted that the hotel might draw people who need a place to rest while they attend to wakes.

Asked if this was a possible market segment, Aqueen Hotels’ general manager Albert Leong said: ‘We welcome all kinds of guests.’

Although Crescendas’s Mr Leow could cast aside doubts about Aqueen Hotel Lavender’s location, he admits he can still be superstitious at times. For instance, he consulted a geomancer – who gave the Lavender site the all-clear – before entering the deal.

Also, there will not be rooms with the number ‘4′ or ‘14′ across all Aqueen hotels – not just the one at Lavender. This, according to him, is his personal preference.

Mr Leow, who is also president of the Association of Small and Medium Enterprises, knew the site’s previous owner. He visited the 8,338-sq-ft freehold plot, did the sums and Crescendas eventually invested about $17 million to buy the land and build the six-storey hotel.

According to Aqueen Hotels’ Mr Leong, the Lavender establishment’s target market will be no different from that of other mid-tier hotels – it aims to draw business travellers who want a clean, value-for-money and accessible place to stay.

The hotel fits these criteria, he added. It is a 10-minute walk from Lavender MRT Station and is near the Singapore-Malaysia Coach Terminal. There is no swimming pool but all rooms come with broadband and cable television. He also emphasised that Singapore Casket is relatively quiet and guests will not be disturbed.

Aqueen Hotel Lavender’s site poses a ‘good challenge’ and could be a ‘marketing point’, Mr Leong reckoned. Room rates have not been fixed but they should be close to those at Aqueen Hotel Balestier. It is the first of the chain to open in May – its occupancy rate exceeds 80 per cent and promotional room rates are above $88 per night.

Cushman & Wakefield’s Mr Han noted that more people have found Lavender’s proximity to town attractive. He illustrated this with a few examples: Other hotel chains such as Hotel 81 and Fragrance Hotel have set up shop there, and prices at Citylights near Lavender MRT Station have risen.

Condos at Citylights were first launched in 2004 at an average price of $590 per square foot (psf). Caveats show that prices last month ranged from $950 to $1,176 psf.

As for Aqueen Hotel Lavender, Mr Han felt that it should do well even if it is next to Singapore Casket – budget travellers are generally ‘less picky on location’ and ‘more picky on stretching their dollar’.

Apart from the Aqueen hotels in Balestier and Lavender, two more are coming up in Paya Lebar and the Tyrwhitt area. Crescendas hopes to start building Aqueen Hotel Paya Lebar in the next two months.

Altogether, the four hotels will have around 360 rooms and Crescendas will be investing about $75 million in them.

Crescendas plans to grow the Aqueen chain further and is looking for more sites along the fringe of the city. The target is to have 1,000 hotel rooms in Singapore in the next three years.

The company, which also has real estate, manufacturing, distribution and technology businesses, first ventured into the hospitality industry on the belief that there is a shortage of mid-tier hotels here.