Yesterday, the topic of running a little hotel cropped up again with K over Fajitas and a jug of Pink Guava Margarita.
I read an article in the papers a few days ago about a young 20-something fella who, together with 4 other buddies, pumped in about 10 grand each to open up a small 39-bedder backpackers hostel in a just-about-off city-centre location. And business is pretty good, according to him, with a steady 70% occupancy. Plus it is set to increase with tourist arrivals soaring in the coming months. The industry has definitely recovered from the '97 Asian financial crisis, the traumatic events of 911 and the scourge of SARS in 2003.
Well the both of us have always been intrigued with cool boutique hotels. And going by the rate these are popping up all over the world, so are many accomodation-savvy travellers. Needless to say, these places provide the warmth of character and cosiness the big-budget 5-Stars often lack. And most importantly, at about, what, half the price? OK two-thirds if you are really into the more up-market boutiques.
Our only quibble with these smaller hotels is that often, a gym and decent pool are missing from the equation. But then again, how often do you actually use these facilities while on holiday huh? We always pack our sports-gear but succumb to either a hearty breakfast or the comfy bed after a day out sight-seeing. And then pay for it when we get back home =))
Anyway. we figured that here in sunny S'pore, a niche can be carved out of the Boutique Hotel catergory. Very creatively named the Budget Boutique segment =)) We're not interested in running a backpackers' haven with dormitories and shared toilets and kitchenettes jammed with a United Nation's worth of smelly foreigners in a World Gourmet Summit. And neither do we have the
moolah to compete with places like the grand 'old lady' of S'pore boutiques, 1929, or The Scarlet or even the recently opened New Majestic.
Something in-between would be nice. Pitched at the travel-savvy with an eye for style and yet a finger firmly on the purse-strings. Someone willing to pay like 130 Sing dollars a night for a Double room. And yet won't want to stay in a character-less 3.5-Star. Someone who doesn't need all the frills of an
atas restaurant on the mezzanine floor, a full buffet breakfast at the poolside cafe, newspapers at the door, Aesop toiletries and a turn-down service with Godivas before bed-time. Someone who prefers a clean, tastefully-designed room with a spotless toilet over a drab bed-cum-wardrobe ensemble or a lavish but
obiang set-up with a butler-drawn bath.
Someone like us =))
Perhaps we could have a tie up with IKEA and call our hotel
The Blue & Yellow. Ok kidding about the name =)) Budget Scandinavian-
chic appointed rooms, designed and subsidised by the furniture giant which can serve as a sort of walking (actually sleeping!) advertisement for the humongous Swedish Meatball =)) Well IKEA has always said it was the place for people who, to quote its advertising, "have more taste than money". Excellent tagline for our place doncha tink? =P Lets see if they are interested in getting into the Hotel business. If Armani can do it in Dubai and Bvlgari in Milan, the Swedes can certainly do a budget one in S'pore =))
But after all that dreaming, it comes down to Dollars and Sense. I mean we are not about to give up our day jobs to become budget hoteliers. Its more of a side-line really. An investment of sorts that we really have to work at, not sit back and let the stock-broker call and say its a good time to dump the 50 lots. Sourcing for funds, getting a good location and doing up a solid business plan, we can do. But getting a good Operations man (or woman) to run the show for us is another matter. Someone after our own heart. Good sense is hard to find you know =))
So after hearing me ramble, you guys think it is a viable proposition?
More importantly, any investors? =P