Singapore Hotels Tap STB Fund to Upgrade and Fend Off Regional Competition

According to an August 17 report by BMI, a unit of global financial information services company Fitch Group, tourist arrivals in Singapore hit 1.63 million in July, 2.9 per cent lower than in July 2025. From January to July 2026, total international arrivals hit 9.8 million, down 1.9 per cent from the same period in 2025 and 11.7 per cent lower than pre-pandemic levels in 2019.

According to the Singapore Tourism Board, China remained Singapore’s largest source market for the January to July 2026 period, with arrivals rising 4 per cent to 1.9 million. This was followed by Indonesia at 1.3 million visitors, down 11 per cent, and Malaysia at 732,000 visitors, up 1 per cent. STB noted that the increase in Chinese visitors was driven predominantly by families with children, bolstered by family-friendly offerings such as Disney Cruise Line’s Disney Adventure and Resorts World Sentosa’s Singapore Oceanarium.

Based on data from commercial real estate services and investment firm CBRE, the average daily rate in 2025 for a luxury five-star hotel in Tokyo was between US$630 and US$660. In London, it was between US$610 and US$640, and in Singapore, it was between US$440 and US$465.

Kung Teong Wah, cluster general manager for Parkroyal Collection Pickering and Parkroyal on Beach Road under the Pan Pacific Hotels Group, said the era of one-size-fits-all hospitality is over. The hotel has invested about $100,000 to instruct 20 staff on formal butler service through a Britain-trained trainer, while also bringing in a professional storyteller to craft and share narratives.

Parkroyal Collection Pickering is also overseeing an ongoing upgrade of its lobby, bar, wellness floor, guest rooms, urban farm and hydroponics facilities. With the room upgrades scheduled to wrap up in April 2027, the renovation follows the hotel’s October 2025 relaunch after a S$3.7 million refurbishment of its event and function spaces.

“If we keep waiting, we’re going to not only lose business for this hotel, but also lose business for Singapore. We need to rejuvenate life and experiences in hotels at a faster pace because the regional market is maturing and is so much cheaper than us,” said Kung.

The Singapore Tourism Board’s Hotel Rejuvenation Fund, launched in 2025, supports hotel owners and operators in refurbishing their properties to maintain the Republic’s position as a premier tourist destination. The fund supports three key components: product enhancements that create differentiated guest experiences targeting specific segments and lifestyle trends; productivity improvements through adopting automation, technology and process redesign; and sustainability initiatives to reduce environmental impact.

Funds are disbursed on a reimbursement basis, subject to hotels achieving agreed-upon project deliverables and milestones. Projects are evaluated on four criteria: increased productivity per staff; reduced carbon emissions; improvements in visitor satisfaction, total revenue or brand value; and the redesign of at least three job roles.

Owing to strong industry interest, STB has extended support for the fund by a year. Rachel Loh, STB’s executive director for hospitality and tourism talent, acknowledged that high costs and operational pressures, exacerbated by the Middle East crisis, can deter hotels from undertaking necessary upgrades. “Upgraded hotel experiences help create a more vibrant and attractive Orchard Road, complementing broader efforts to breathe new life into the area,” she added.

Three other hotels have successfully applied for the grant. JENS Singapore Tanglin by Shangri-La is using the funds primarily for back-end operations and implementing artificial intelligence to streamline work processes. Days Inn by Wyndham Singapore Novena will introduce wellness-focused features, such as magnetic therapy mattress pads and a 1970s-inspired fitness facility, to cater to business and medical travellers near the Novena hospital belt.

Furama City Centre in Chinatown will centre its rejuvenation project on guest experience and operational sustainability. The hotel in Eu Tong Sen Street will introduce smart room controls, such as auto-lighting in corridors and automated controls for curtains and air-conditioning, alongside AI-powered cleaning robots and energy-efficient air systems. Some rooms will also be converted into family-themed spaces. General manager Carol Yen said the upgrades will start in the third quarter of 2026 and be completed by end-2027.

Ananth Ramchandran, CBRE’s head of advisory and strategic transactions for hotels and hospitality, Asia, said these refurbishments translate into “fresher products, better service consistency and a stronger case for room rates that reflect the Republic’s position as a premier tourist destination, which in turn lifts the overall visitor impression of the area, not just any one hotel.”