Singapore hotels drop leisure bookings after being designated as SHN facilities

EVEN as hotels in Singapore see a robust demand for staycations as borders largely remain shut, some hoteliers have had to give up leisure bookings to make way for guests required to serve their stay-home notice (SHN).

The Business Times (BT) understands that Naumi Hotel Singapore and Amara Singapore had recently notified guests that their bookings were cancelled as their premises will be used as SHN facilities. The names of hotels contracted with the government have not been made public.

BT has reached out to the Singapore Tourism Board, which oversees applications for business resumption of hotels, for comment.

In an email seen by BT, Naumi Hotel said: "Naumi has been designated by our government as the stay-home notice hotel to host returning guests, from different countries. These guests are serving their 14 days-notice as a mandatory requirement. As such, we are taking extra precautions and safety measures for all our guests."

"Due to the uncertainty of the situation, we will not be able to determine when Naumi will open for bookings to the general public," noted the email.

Meanwhile, BT understands that Amara will no longer be accepting bookings from now till February. Amara had notified guests that they will be contracted with the government from December 2020.

"As such, we regret to inform you that we will be unable to honour your reservations," Amara wrote in an email notification seen by BT.

BT has reached out to Amara for comment while Naumi has declined to comment.

CGS-CIMB analyst Eing Kar Mei said that hotels contracted with the government will be able to benefit from block-booking even if underlying occupancy is low.

"Singapore is not a country with strong domestic demand, hence staycation demand is rather limited, especially for hotels which lack 'resort-like' characteristics," she said.

However, DBS analysts Geraldine Wong and Derek Tan said that while SHN business offers stability, the low rates that hoteliers offer to secure the business translates to a lower revenue per available room.

"SHN business will likely taper off over time as the need for more quarantine business trail off as the cases in Singapore falls," they said.

Meanwhile, they pointed out that based on their channel checks, selected hotels across the island are close to maximum occupancy with rates close to pre-Covid levels. This is especially so for hotels in Sentosa that gives off a "vacation vibe".

Grand Park Orchard was among those that have seen a surge in bookings. On Saturday, the hotel saw long queues at its lobby with guests saying they had to wait in line for hours to check in.

On Monday, Prime Minister Lee Hsien Loong announced the Dec 28 start of Phase 3 of domestic reopening. He also said Singapore must reopen its borders - and do so in a controlled and safe way - to preserve the country's status as an international hub.

Mr Lee cautioned that there will be more imported cases, with some risk of these cases spreading the virus to the community. The government will take every precaution to prevent imported cases from triggering a new outbreak, he added.