SINGAPORE—Being one of the largest hotel chains in Singapore might be a huge burden to carry for a country that relies heavily on tourism, but executives at Global Premium Hotels Limited aren’t worried.
GPH’s emphasis on innovation, customer focus, and its recently introduced mid-tier brand, infuse the company with a competitive advantage, according to officials.
In fact, GPH, a subsidiary of real estate development and hotel operations company Fragrance Group Limited, saw an occupancy rate of 90.5% for the nine months ending 30 September 2012, with an average daily rate of $104.30.
“We have been developing and operating hotels in Singapore since 1995,” said CEO Lim Chee Chong via email. “Our established track record and reputation of providing affordable and value-for-money accommodations in terms of price, location, service and cleanliness have led to our Fragrance brand of hotels becoming well recognized in the local and regional hospitality industry.”
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Lim Chee Chong Global Premium Hotels Limited |
GPH has been around for 17 years and its long-standing reputation in Singapore is because of its emphasis on accommodating its customers while offering affordable rooms, Lim said.
“All our hotels are strategically located and rooms are furnished with essential amenities to provide our guests’ comfortable stay at affordable prices,” Lim said. “We strive to provide positive customer experience; hence we place great importance on the room and service quality offered by our hotels.”
Diversifying the brand
Because the company focuses on efficiency, its expertise is on developing hotels quickly and inexpensively to optimize returns as quickly as possible.
GPH manages a portfolio of 23 hotels of which 22 are operated under the economy-tier Fragrance brand. Not wanting to remain stagnant, GPH in 2011 introduced its first mid-tier brand hotel, the Parc Sovereign Hotel, which targets up-market business travelers. With a room count of 170, the hotel has been valued at $613.5 million.
Upon completion of the Parc Sovereign Hotel at Tyrwhitt Road, the 265-room hotel will raise GPH’s room count by 15.2% to 2,003.
“Growth through acquiring yield-accretive and quality assets has been the Group’s priority,” Lim said. “Over the next few years, we hope to increase the number of hotel rooms in our portfolio by approximately 10% annually. As such, we are constantly looking for suitable hotel sites in Singapore to expand our Fragrance and Parc Sovereign brand of hotels.”
The company is also focused on attracting all types of travelers, catering to both leisure and business travelers. This requires building relationships with local and overseas travel agencies, Lim said, which helps promote the hotels worldwide.
“Besides this, we target business travelers by entering into contractual agreements with corporations to provide accommodation for their staff when they are in Singapore.”
Working closely with online travel agencies is another channel that promotes the hotels to independent travelers. Additionally, the company participates in tourism and trade conventions and exhibitions in the Asia/Pacific region, overseas road shows, consumer fairs and product update launches by the Singapore Tourism Board or National Association of Travel Agents.
“These marketing activities are essential as they help us to identify the current market needs and preferences of present-day travelers so that we can adjust our products and service offerings to better suit their needs,” Lim said.
Staying ahead of the competition
According to the Singapore Tourism Board, the country will see between 13.5 million and 14.5 million visitors in 2012 and saw a record number of visits—13.2 million—in 2011.
“To stay competitive, we have more variety and range of products being offered. … We have the advantage of different location offerings, different product range and we cater to a wider range of travelers,” Lim said. “We constantly upgrade our hotels to look fresh, clean and new to attract travelers.
But Lim’s quest to ensure GPH’s standing as the largest chain in Singapore is motivated by the competitive edge the hotel has. To him, it’s the constant innovation the company is committed to that will keep them ahead of the competition.
“Our desire to be the preferred hotel of choice drives us to come up with new ways to provide the best value and comfort.”
This desire to be the premier hotel in Singapore was the force behind the reopening of its oldest hotel—the 168-room Fragrance Hotel Ruby in December. The revamped hotel offers a first-of-its-kind concept, dedicating two executive floors to travelers looking for more exclusive accommodations by providing free Wi-Fi, smart TVs and a pillow choice option.
“We are conscious of the options that travelers have and continuously look to enhance our facilities and services for the best of our customers,” Lim said.
“As part of our strategy, we would like to create more options for our travelers by offering different room categories to cater to the various needs. If our customers would like to utilize more amenities, have access to better view or privacy, they can opt to upgrade at a slightly higher price. The selection will allow customers the flexibility to customize their stay thereby differentiating us from other hotels in the same category.”