InterContinental Hotels in Singapore will cease operations next year and is expected to undergo a brand change | Lianhe Zaobao

The InterContinental Hotels located in Bugis, Singapore, will cease operations starting in 2026 and is expected to undergo a brand change. According to a letter from the InterContinental Hotels Group (IHG) to booked guests seen by Lianhe Zaobao, the InterContinental Singapore will no longer be affiliated with the group starting next year. However, the hotel will still fulfill existing bookings. Journalists also found that it is no longer possible to book hotel rooms for next year on booking platforms. It is understood that Marriott International may take over the operation of the hotel. The InterContinental Hotels Group operates 13 different brands of hotels locally. After the closure of the InterContinental Singapore, only one InterContinental brand hotel will remain, located at Robertson Quay. It is owned by the local real estate tycoon Raj Kumar's RB Capital. The InterContinental Singapore is owned by Frasers Hospitality Trust, which has a total of 406 rooms. The trust management company announced on August 15 that the acquisition and privatization agreement for the trust has been approved by a high vote from the bondholders. In a joint statement to Lianhe Zaobao on Tuesday (September 16), Frasers Hospitality Trust and Frasers Hospitality said: "Although the InterContinental Singapore will exit the InterContinental Hotels Group starting in 2026, it will continue to operate and remain an important asset for Frasers Hospitality. Any changes in operators are in line with Frasers Hospitality's proactive asset management strategy." Frasers Hospitality is the hotel business unit of local real estate developer Frasers Property. In May this year, Frasers Property proposed to acquire Frasers Hospitality Trust at a price of SGD 0.71 per bond, to delist and privatize it. The appreciation of the Singapore dollar increases costs, expected to impact hotel industry demand Related Reading Singapore's hotel investment transaction volume reached SGD 700 million in the first half of the year, ranking fourth in Asia-Pacific M Hotel closes, Tourism Board: Our hotel market remains strong The CEO of the trust management company, Yan Zhide, previously responded to unit holders regarding the claim that the hotel industry is performing well, stating it is "not true." "High-end hotels in Singapore, such as the InterContinental Hotels Singapore, may not be the case, as there may be differences in the composition of inbound travelers and the target customer base of the hotels based on price sensitivity and demand elasticity." He also mentioned that due to the appreciation of the Singapore dollar, the cost for some business or leisure travelers to stay in these high-end hotels has increased, thereby affecting demand. Frasers Hospitality Trust owns eight hotels and six serviced apartments across Australia, Germany, Japan, Malaysia, the UK, and locally. The half-year financial report for the period ending in March showed that due to a decline in net property income and an increase in financial costs, the distribution per stapled security decreased by 6% from last year's SGD 0.01091 to SGD 0.010257. The InterContinental Hotels Singapore opened in 1995. The hotel is on a 99-year leasehold, with CapitaLand and Keppel holding 90% of the shares, while InterContinental Hotels Group holds the remaining 10%. In 2006, it was sold for nearly SGD 200 million to Pacific Coast Assets, controlled by Thai billionaire Charoen Sirivadhanabhakdi. Charoen was also the chairman of the Lion City Group. In 2014, the InterContinental Hotels Singapore and Fraser Suites were injected into an asset portfolio to form Frasers Hospitality Trust. The InterContinental Hotels Singapore is the second hotel recently reported to be closing. Previously, the Singapore Meritus Hotel, which had been operating locally for 57 years, announced it would close at the end of October. However, the Singapore Tourism Board previously pointed out that the hotel industry in our country remains strong and is still on an upward trend. This year alone, seven new hotels have opened. Data from Jones Lang LaSalle (JLL) also shows that the local hotel investment transaction volume reached USD 546 million (approximately SGD 700 million) in the first half of the year, ranking fourth in the Asia-Pacific region