IHG Group to exit InterContinental Singapore in Bugis by end-2025 as hotel rebrands
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The 406-room, 16-storey hotel at Bugis is expected to be rebranded in 2026, with a new operator.
ST PHOTO: LIM YAOHUI
Follow topic:
- IHG will cease managing InterContinental Singapore at Bugis by end-2025, as its agreement concludes.
- Frasers Hospitality Trust, the owner, plans to rebrand the 406-room hotel in 2026 with a new operator.
- Poor performance due to a mismatch in traveller profiles and price sensitivity impacted the hotel's revenue.
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SINGAPORE – The InterContinental Hotels Group (IHG) will exit InterContinental Singapore in Bugis by end-2025, when its hotel management agreement comes to an end.
The 406-room, 16-storey hotel in Bugis, owned by Frasers Hospitality Trust (FHT), is expected to be rebranded in 2026 with a new operator.
Marriott International is understood to be on the shortlist to operate the rebranded property, according to The Business Times, which broke the news on Sept 15
In a joint media statement on Sept 16, Frasers Hospitality and FHT said the hotel “will continue operations and remain a key asset of Frasers Hospitality” even as it exits the IHG system, with effect from Jan 1, 2026.
The statement added that any change in hotel operator is “consistent with Frasers Hospitality’s active asset management strategy”, and that further updates will be shared in due course.
Frasers Hospitality is the hospitality arm of Singapore-listed Frasers Property, controlled by Thailand’s richest man, Mr Charoen Sirivadhanabhakdi.
Frasers Property succeeded in August in its second attempt to privatise FHT with a $1.37 billion offer.
IHG is a British multinational hospitality company that owns 20 hotel brands, including Holiday Inn and the upcoming Hotel Indigo Changi Airport.
It continues to operate the remaining InterContinental property here at Robertson Quay, which is owned by the Royal Brothers’ RB Capital Group.
In an investors’ meeting on Aug 15 to vote on the privatisation scheme, FHT’s manager mentioned poorer performance at “upper-class hotels in Singapore such as InterContinental Singapore”.
Mr Eric Gan, chief executive of FHT’s manager, said during the meeting that “there may be a mismatch in the profile of inbound travellers and (the) profile of a property’s targeted guests segment due to price sensitivity and elasticity of demand”.
According to the minutes of the meeting released on Sept 14, Mr Gan said some business or leisure travellers are finding it more costly to stay in such premium hotels owing to the appreciation of the Singapore dollar, which affects demand.
He added that comparisons are generally conducted against similar properties in the vicinity.
For example, the InterContinental Singapore was compared with other hotels such as JW Marriott and Andaz.
Frasers Hospitality and Frasers Hospitality Trust said the hotel “will continue operations and remain a key asset of Frasers Hospitality” even as it exits the IHG system effective Jan 1, 2026.
ST PHOTO: LIM YAOHUI
For its third-quarter business update issued in August, FHT reported revenue per available room of $242 for its properties in the Singapore market, down 5.6 per cent from $256 a year earlier.
FHT also owns Fraser Suites Singapore in River Valley, as well as other hotels and serviced residences in Australia, Germany, Japan, Malaysia and Britain.
FHT’s Singapore-listed units are suspended ahead of its delisting on Oct 6.
Frasers Property shares closed down 0.9 per cent, or one cent, at $1.06.
