Accor’s Franchise Deal in Singapore Underscores Mounting Challenges for Budget Chain Oyo
Photo Credit: Fragrance Hotel Selegie Singapore poolside. Accor Hotels.
Skift Take
The one thing budget hotel upstarts have done is make global hotel chains hungrier for their sector, especially high-growth markets such as Southeast Asia. Oyo probably knows this; it has named a CEO for the region.
Oyo Hotels & Homes has a competitor in Accor Hotels, which has just inked a deal to franchise 15 budget hotels in Singapore which are branded Fragrance Hotel.
Even before there was an Oyo, or the other foremost Southeast Asia budget chain RedDoorz, Fragrance was offering “good price, location [note that in many cases this means close to public transport], service, cleanliness and hassle-free booking experience,” says its website.
A room at Fragrance Hotel in Balestier, an area on the fringes of the city, costs $64 for a stay on August 17. Price-wise and building-wise, Fragrance hotels sure sounded like a good target for Oyo Hotels & Homes to convert to its brand.
Except its owner, James Koh, has just signed a franchise with Accor.
Singapore’s hotel market is tight for developmen
