More are checking into hotels - for work

Singapore

WITH Covid-19 profoundly reworking the office concept, hotel operators have moved to selling flexible workspace in recent months for employees not yet able to head back to the office. Hotel operators told The Business Times (BT) that they have seen a good take-up for their work-from-hotel packages, though such offers may be only a temporary fix.

InterContinental Singapore told BT that it has had 200 bookings since the launch of its package in mid-August. The hotel is now pulling in double the number of weekly bookings currently, compared to when the package was first introduced.

Guests who bought this package range from startup entrepreneurs to executives and vice-presidents of corporate firms, said Gerrit Chng-Luchau, InterContinental's director of sales and marketing. He added that the hotel has also attracted young couples who are taking the opportunity to have a "daycation".

"With the travel restrictions in place due to Covid-19, we wanted to offer local guests an alternative experience within our guest rooms. We quickly noticed that there was a demand for private and reliable work spaces as a lot of offices still remain closed or have many restrictions placed on them," he said.

Marriott Singapore Tang Plaza has received more than 300 bookings for its work-from-hotel package since its launch in August, with guests ranging from 20 to 50 years old, it said.

The Ascott's lyf Funan Singapore said that between the launch of the service in August and Sept 23, the hybrid service that combines serviced residences, hotels and co-living apartments received more than 130 bookings. Norman Cross, general manager of lyf Funan Singapore, said interest came from professionals, managers, executives and technicians, freelancers, law practitioners and companies looking for workspace to accommodate their split-team arrangements.

Over at The Fullerton Hotel Singapore, most of its guests who booked the work-from-hotel package have been corporates, with the hotel receiving more than 150 bookings in August.

Cavaliere Giovanni Viterale, general manager of The Fullerton Hotels and Resorts, said some guests have made use of the hotel's central location to catch up with work contacts.

Guillaume Places, hotel manager at Hotel G Singapore, said some guests have a full schedule of virtual meetings and have them at hotels for privacy's sake. Others want to "change things up" to get a sharper focus.

About 15 per cent of new bookings for InterContinental's package have been by pet owners - with their animal companions in tow. The pet-inclusive package comes with a basket of pet amenities and dining credit, which can be used on the in-room pet menu.

Some hotels have opened up common spaces for use as temporary offices. Furama RiverFront is utilising areas such as its Waterfall Lounge, where guests who purchase passes can work. Most tables at the lounge were taken up when BT visited the hotel last Thursday.

Said Germaine Yap, assistant marketing and communications manager for Furama RiverFront and Furama City Centre: "This pandemic has challenged us to think out of the box."

Furama RiverFront revised the pricing for its passes on Sept 28. Daily passes are now S$28, up from S$15; monthly passes are going at S$450, up from S$250.

Ms Yap said the increase in pricing includes more dining credits, food and beverage discounts and access to partners' discounts, among other things. Guests can reserve seats for another S$5.

Whether higher prices would sit well with customers remains unclear. Kang CJ, an employee in the manufacturing industry who used Furama RiverFront's lounge to meet her colleagues last Thursday, said she is unlikely to return, given that she can head back to the office soon and that the hiked price is "too big a jump".

Ian Loh, Knight Frank Singapore's head of capital markets for land and building, collective and strata sales, said that with these innovative uses of space, some hotels are actually full.

He added that hotels throwing in dinner or dining credits helps to keep people spending, and keeps hotel staff employed, although tourism is not back in full swing yet.

Said Kenneth Szeto, real estate and finance partner at Withers KhattarWong, Singapore: "The hospitality sector has the greatest potential to meet the demand for a 'third space' between work and home. Hospitality venues have the flexibility to adapt, especially as hotel groups were already evolving traditional business models to meet working needs before the pandemic."

Withersworldwide noted in a report that the office is going to become just one option among a range of workplaces. "The days of whole buildings being occupied by a single tenant for a single purpose - in this case for use as offices - they say, are over. Spaces that have historically been designed with a single purpose, might find themselves no longer fit for purpose, as workers want to be able to live, work, shop, socialise and work out in a singular multi-purpose environment."

Still, Christine Li, Cushman & Wakefield's head of business development services for Singapore and South-east Asia, thinks there will be less demand for working from hotels than for co-working spaces, as the hotels' promotional pricing might not be sustainable, given the operational costs to cover.

Govinda Singh, executive director of hotels and leisure at Colliers International, said that while more people have been working from hotels or serviced residences, this has been tempered by the availability of rooms. Some rooms were being used as quarantine facilities, with a significant number of properties shut during the "circuit-breaker" too.

Withers KhattarWong's Mr Szeto said: "Although hospitality facility owners and operators will no doubt be doing their utmost to innovate in the near term to win alternative business and maintain their cash flow, it would be vital in the medium term for the borders to re-open and for tourism and travel to freely flow again."