12 September 2003
As the first hotel in Kwek Leng Beng’s hotel empire, the Copthorne King’s Hotel in Singapore has great nostalgic value for the Millennium & Copthorne group. It also boasts a loyal clientele among foreign guests and locals, who flock there for its Penang food. It recently underwent a renovation, the first phase of which has been completed. Eddie Yeo, general manager, talks to Yeoh Siew Hoon about repositioning plans for the 33-year-old property.
Q: How is the hotel being repositioned now that the first phase of renovation is complete?
Yeo: Upon completion of the entire major renovation exercise, we find a need to ‘jump the curve’ and to differentiate our products from the competition at the Riverside area.
In my view, what is a hotel – the physical products are nothing but mortar and cement. Whether it is old or new, it is the same. It needs a soul, a respected brand name and the proper salad dressing (new interior design). That’s the exercise and challenge we will be embarking on. After 33 years, I will not say that it is an easy exercise but a very interesting project to embark on. The reward at the end of the day cannot be anything but positive.
Upon completion of the renovation, we will be re-positioning CKS to a good four-star business class ‘boutique hotel’.
As a hotel product, we want to be able to provide extra personalised services – intimate and warm and coupled with the support of our new hotel products. It will be a waste of investment to spend S$14 million and to remain the same, and not take advantage of the changing future landscape of the Singapore River re-development.
Q: Tell us more about this changing landscape of the Singapore River.
Yeo: At Robertson Quay, there are seven international class hotels offering approximately 2,846 rooms which is about nine percent of the total room inventory of Singapore. More development and hotels will be constructed over the next decade along Singapore River.
We have been informed that plans are in the pipeline to enhance the Singapore River and to re-develop it into the ‘Venice of the East’ along the same model as Sydney Darling Harbour.
If this is true, than the value of properties and businesses along the Singapore River will be very exciting and business potential will be very promising. This river re-development, when kicked off, will definitely enhance the importance of riverine activities and the importance of the three Quays – Boat Quay, Clarke Quay and Robertson Quay – where CKS is situated. Robertson Quay is currently the least developed and has the highest potential for strategic re-development into an important tourist attraction.
We envisage that with this planned re-development, a shift in the current position of CKS in this geographical sector will totally change the business model and business potential of the hotel property in the next 10 years.
As a business entity, when the business environment changes, the playing field will no longer be the same. Business will have to innovate, and that is why CKS will differientiate its product from the pack to stay competitive. Especially when CKS has the potential and abilities to do so.
Q: Tell us more about the renovations and what has been completed.
Yeo: Under STB’s tax incentive scheme for hotel refurblishment, a total of S$14 million renovation allowance has been approved by STB for Copthorne King’s major renovation exercise.
To date, renovation has been carried out in the following areas:
A. Level 1 involving the entire lobby, a new and re-positioned Check-in Counter, a new Business Centre with a Meeting Room, new guests waiting lounge, Tour Desk, a new and refreshing Princess Terrace Cafe with an open kitchen dishing out the best of Penang favorites.
In addition, we have converted the two lobby shops into additional dining area with an Alfresco dining area.
B. Connection Lounge is now fully renovated, and is a popular rendezvous for locals and house guests.
C. Rooms renovation: 65 percent completed (all 144 Deluxe Rooms on the Tower Wing, and 54 rooms on the Main Wing).
D. Executive Club Lounge on the third level is yet to be completed. Upon completion, the Lounge will include an alfresco lounge with a golf putting green as a new feature.
Q: When will the full renovation be complete?
Yeo: The entire renovation was orginally scheduled to be completed before the end of 2003. SARS has somewhat delayed the whole renovation process. The new completion date for the remaining hotel facilities will be around mid-2004.
Q: What markets will you be going after
with the repositioning? What are your markets now?
Yeo: I do not think that there will be a big
difference in terms of our market mix upon re-positioning, but it will allow us to be more competitive in the Singapore hotel scene and at the Riverside vicinity.
We will expect our average room rate to be better. Currently, our markets are 65 percent corporate, 25 percent leisure and 10 percent others.
Japan is a key market for us, and most Japanese, being smokers, like our balconies – the only bougainvillea hotel balcony in Singapore; it’s a
product strength of Copthorne Kings and we are proud of it. Japanese make up 40 to 45 percent of our guests.
Q: Kings was CDL’s first hotel... the group has grown tremendously since then.
Yeo: Yes, CDL has made remarkable growth and expansion. In the 1980s, it grew from a small, home grown property development company into an international conglomerate with property interests throughout the region.
Having diversified into property rental, CDL ventured into the hotel business with the successful tender of the Singapore Government, Urban Redevelopment Authority (URA) first land sale programme in 1967 with the construction and management of their first hotel, the Kings Hotel (Copthorne Kings) on Havelock Road.
From one hotel in 1970, the company has grown through mergers and acquisitions over the last 31 years into the largest hotel group in Asia with 117 hotels.
