Ditch the Jargon, Embrace Affordability: Mercure Icon Redefines Mid-Market Stays
A Privilege room category at Mercure Icon feels larger than 22sqm. Right, a new icon in mid-tier rises
By Raini Hamdi, May 24, 2024
The hospitality industry loves to throw around terms like “affordable luxury,” but what does it even mean? I’d rather have an affordable stay, or a luxury stay, but not an “affordable luxury” stay, which is open to interpretation. Besides it makes me feel I can’t afford the real thing.
My most recent affordable stay was at the new Mercure Icon Singapore City Centre, which had an introductory rate from $144 (S$195) excluding taxes. That’s a rate that makes you think twice before saying Singapore hotels are expensive. You might be skeptical and ponder, perhaps it’s due to a poor location? Or, they must be charging extra for WiFi, use of gym and other basic amenities? Walls paper-thin you could have an unwanted auditory experience? Look at the room count – nearly 1,000 – overcrowding?
The good news is: None of that. In fact, remarkably, this new kid on the block has redefined the mid-market hotel, a product rarely celebrated because it is generally standard and uninteresting.
It starts with the hotel’s priceless location at 8 Club Street, which ensures an absorbing and convenient stay for both leisure and corporate travelers. Raffles Place is a 10-minute walk away. Chinatown’s colorful temples, murals, quaint shophouses, alleys of restaurants and bars, and famous hawker centres such as Maxwell, can satisfy any craving “to be in the neighborhood.” I found myself glued to the location but was glad for the two MRT stations nearby as taxi fares have become exorbitant in Singapore.
My room on the 11th floor has a private balcony with a table and armchair, showcasing a view that perfectly captured Singapore’s modern skyscrapers towering over the distinct red clay-tile roofs of traditional shophouses. The view also took in the hotel’s 40-meter-long pool and wellness deck, surrounded by greenery. Families, couples and singles enjoyed the space without any overcrowding.
Virtually all of my affordable stays had neither balcony nor great view. In contrast, 80% of rooms at Mercure Icon have both.
My 22sqm room, Privilege, is the largest category after a 17sqm Deluxe and 15sqm Classic. It may be small but smart design makes it feel much more spacious. The raised Queen bed allowed for luggage storage underneath, while a long console provided a functional workspace and additional storage space. Amenities like a safe, fridge, Nespresso machine, smart TV and a Hansgrohe rain-shower added to the comfort. Even the lighting was well-designed and bright, a frequent shortcoming in many hotels (including luxury), which also seem to favor switches and sockets placed in all the wrong places, unlike Mercure Icon.
Mercifully, the walls were soundproof. I slept soundly each night.
So, how did the Mercure Icon achieve this mid-market magic? A big part of the answer I believe lies in the ownership. Worldwide Hotels, the company behind the hotel, understands affordability from both the guest and business perspectives.
Unlike some hotel owners who see the industry as glamorous, Worldwide Hotels is a rags-to-riches story that has a deep respect for value. Starting with the low-cost Hotel 81 brand three decades ago, they’ve honed their expertise in the mid-tier market.
To its credit, it also has the discipline to stick to its mission: to be the best Singapore mid-tier hotel brand by delivering exceptional value, as it has done with Mercure Icon. There’s no room for misleading jargon here.
The company, led by managing director and CEO Carolyn Choo, operates all its 40-plus Singapore hotels, including Mercure Icon. The franchise agreement with Accor is strategic, leveraging the chain’s global reach to fill the hotel’s 989 rooms. Franchising also allows for greater control over costs and operational standards. For instance, outsourcing all food and beverage services, including breakfast, eliminates the need for a large in-house staff, likely contributing to the hotel’s ability to offer affordable room rates. Despite outsourcing, the presence of general manager Sunshine Wong at breakfast and the lobby cafe ensured a sense of connection between the F&B and the overall hotel experience.
Finally, Worldwide Hotels isn’t afraid to take calculated risks. In late 2018, it outbid competitors to secure the 99-year lease land for the Mercure Icon at S$562 million. Cost per room is within S$800,000, including the land cost but excluding taxes and financing cost.
Success seems to be on the horizon. The expansive lobby is constantly buzzing with people holding meetings, working, or simply enjoying a cup of coffee – all without any forced “go social” exhortations or “co-working” buzzwords. Barely two months of opening on April 15, the hotel reportedly boasts an average occupancy of 70%, with room rates exceeding the introductory S$200. This is based on the first phase of opening comprising 689 rooms, with the rest of the rooms opening by end-June. If this warm reception from guests continues, the hotel should be well on its way to achieving its goal of 80% occupancy within three months and room rates reaching $185 (S$250), excluding taxes.
I left the hotel sensing that I had enjoyed the true luxury of affordability. It’s the feeling of having chosen an affordable hotel for your trip, and being surprised that it has given you much more than you had hoped for – a surprise that the hospitality industry, with its love of jargon, often forgets to deliver.
