Hotel Restrictions Ease for Upper Circular Road and Beach Road as Singapore Opens Up Heritage Districts

Since 2014, proposals to set up short-term accommodation offerings such as new hotels, backpacker hostels and serviced apartments have generally been disallowed in the Outram, Rochor, Downtown Core and Singapore River areas. This was to avoid a glut of similar offerings that could alter the character of these districts.

On June 5, National Development Minister Chee Hong Tat said these restrictions would be lifted for the Upper Circular Road and Beach Road areas, giving more new hotels, backpacker hostels and serviced apartments the chance to open there. This move was made in response to industry feedback, he said, adding that the heritage appeal of both districts could showcase “how heritage can meet modernity.”

In response to The Sunday Times’ queries, URA said the lifting of restrictions will be valid for two years, until May 31, 2028. This will allow the relevant agencies to assess the take-up rate and broader impact of the policy on the area before reviewing if it should be extended. Each application will be evaluated on a case-by-case basis, subject to agencies’ requirements.

Boutique hotel 21 Carpenter in Clarke Quay was the only new hotel approved in the Upper Circular Road area since restrictions on setting up new short-term accommodations were introduced. It was approved after “careful consideration,” said URA, with factors including the sensitive restoration and innovative adaptive reuse of four conserved shophouses.

Richard Hassell, co-founder of WOHA, the architecture firm behind the design of 21 Carpenter, said it wanted to create an active shopfront with floor-to-ceiling glass to allow passers-by to see inside the restaurant and lobby. The firm also made sure that every room was decently sized and had its own window, despite facing challenges with the shophouses’ original long and narrow layout.

Natt Srinara, a lecturer and consultant at EHL Hospitality Business School, said there is demand for distinctive accommodation options in these areas. “In that sense, the opportunity lies in growing a more interesting mix of hospitality uses, not just pushing up the room count,” he said. He added that Upper Circular Road is well suited to smaller properties serving guests who want to walk to the river and the Central Business District, while Beach Road can cater to a wider mix of tourists.

URA said demand for new hotels in both areas has remained steady, and that it has received requests for accommodation-related uses there over the years. Apart from 21 Carpenter, approvals were granted to facilitate the expansion of three existing hotels within the same shophouse building or street block. At present, there are more than 10 hotels in each district, alongside other businesses such as eateries and bars.

While increased competition from the lifting of restrictions is expected, Hotel Calmo in Beach Road said more accommodation options could contribute to the vibrancy of the precinct. Tourists staying at hotels in the two districts told ST that they hope the move could lead to lower rates and more choices for visitors near the Singapore River.