The Hotel Business is booming again since Singapore hosted its first World Bank and IMF Summit in Singapore, hotels have been running at close to full capacity, which gives cause for many to cheer about. Also with the start of budget airlines several years ago has seen a considerable number of budget hotels and backpacker hostels sprouting up like mushrooms after rain.

Many may have dismayed that they did not anticipate this and jump on the bandwagon to startup a backpacker or budget hotel, well its still not too late, with the events lined up and the integrated resorts, Singapore is bound to have a shortage of hotel rooms (at economic prices).

Now, room rates have also gone up the roof, partially due to the new tax that will levy hotel operators because of the Formula 1 race in Singapore. But mainly due to the rising labour costs, as well as the peak in demand has driven prices skywards. This is not surprising says market watchers who anticipate that it will go up much further as the F1 race draws closer, and during that period of the race, and shortly after the race period, the rates will still remain high for a period of time, until occupancy levels normalize.

A plot of land have been up for tender for building of hotels, situated in the Tanjong Pagar area at Gopeng Road. Most suited as a business hotel, as it is within walking distance to the financial district, of which presently there are only a few other hotels in the vicinity serving this area. This is a prominent gateway leading directly into the main financial and business areas of Shenton Way, Raffles Place and Marina Bay. It is also home to several hotels which have been established to serve the business community and tourist visitors. These include business hotels like the Amara and M Hotel, as well as the award wining hotel like Berjaya Hotel and The Scarlet.