SINGAPORE (Aug 1): Crowne Plaza Changi Airport (CPCA) on Monday opened its 10-storey extension, which will add 243 rooms to its existing 320 and increase total capacity by 75.9%.
Its current developer is OUE Hospitality Trust (OUEHT), which acquired the hotel and the extension from OUE in December 2014 for S$290 million and S$205 million respectively, bringing the total acquisition amount to S$495 million. The hotel is run by InterContinental Hotels Group.
The new wing took 18 months to complete and is projected to increase net property income (NPI) yield from 4.5% to 4.6%.
The increased capacity will also create new jobs, mostly in the operations department for services such as housekeeping and the front-desk, Alicia Wong, the director of sales and marketing for CPCA, tells The Edge Singapore.
Currently, the hotel’s occupancy rate is already above 90%, Wong adds. And despite a tougher market amidst weaker economic sentiments, she says that the management is confident they will do well, particularly with the forthcoming expansion of Changi Airport’s fourth terminal.
CPCA will also focus on marketing to the meetings, incentives, conferences and events (MICE) sector.
“Previously, we weren’t able to cater to so many MICE groups, because our hotel is very busy. But with the expansion, we can cater to more people now, and we are looking at specifically that market group,” Wong says.
Sunshine Wong, the general manager of CPCA, adds that they are looking at multinational companies with headquarters in Singapore in particular. “There is one segment of the MICE market we are looking for, which is the multinational companies in Singapore. We believe that this hotel can be positioned as the [regional] hub to hold the meetings,” he said during his opening address.
OUEHT’s financial results will be released after trading hours today. For 1Q2016, it had recorded an NPI of S$26.3 million. The hospitality segment, which includes income from CPCA, recorded a S$20.9 million NPI.
OUEHT closed 2.7% lower at 71 Singaporean cents.