Article

Hip heritage: The boutique hotel

business in Singapore

Tourism and Hospitality Research

11(3) 217223
! The Author(s) 2011
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DOI: 10.1177/1467358411418569
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Joan C Henderson
Nanyang Technological University, Nanyang Business School

Abstract
The paper deals with the boutique hotel phenomenon, discussing definitions and overall trends as well
as circumstances in Singapore where there has been heightened commercial activity in recent years.
Circumstances in Singapore, although distinctive, yield insights into the qualities of boutique hotels in general
and their development in the South East Asian region. Heritage is seen to make an important contribution to
the city states boutique hotels, many of which are the result of the adaptive reuse of old buildings, but is
increasingly being combined with modern design in endeavours to cultivate an ambience of hip heritage. The
future prospects of boutique hotels with a heritage component thus partly depends on the protection of built
heritage, suggesting an alignment of commercial and conservation interests.
Keywords
boutique hotels, heritage, Singapore

Introduction
Heritage in its various manifestations is an important
visitor attraction for many destinations, but built heritage can be a different type of resource when buildings
unconnected to the industry are converted for the purposes of tourism. Accommodation is one such use and
old buildings may be turned into hotels, especially of a
sort which describe themselves as boutique. Formerly
evident in North America and Europe, it appears that
boutique hotels housed in heritage properties are
becoming more popular with owners, operators and
guests in South East Asia. This paper is concerned
with conditions in Singapore in mid-2010 and examines the boutique hotel sector there with particular
reference to the appropriation of heritage buildings.
The city state is a fitting context within which to
explore these issues given recent increased investment
in boutique hotels, therefore also rendering a review
timely. Although distinctive, the Singapore case provides insights into the characteristics of boutique
hotels as a whole and the dynamics underlying their
emergence and growth in the region. The findings are
derived from analysis of materials in the public domain
produced by official agencies and private businesses,

supplemented by observations made during hotel

visits.

Heritage, hotels and boutique hotels

The concept of heritage is complex and multi-faceted,
but essentially it describes that which is inherited from
earlier eras with implications of socio-cultural value.
There is also an implied responsibility to protect
such an inheritance for the edification of contemporary society and future generations (Nuryanti, 1996).
Heritage takes many forms, has assorted meanings and
performs several roles (Smith, 2006). It is closely
linked to history and identity at individual, group
and national levels. The retention of heritage thus
helps in understanding the past and present as well
as yielding lessons for the future. Certain aspects of
heritage also appeal to tourists and it can be a key
Corresponding author:
Joan C. Henderson, Nanyang Technological University, Nanyang
Business School, #S3. BIA. 27, Nanyang Avenue, 639798,
Singapore
Email: ahenderson@ntu.edu.sg

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theme of destination marketing. While close, the heritage-tourism relationship may be one of conflict and
the tourism industry is often censured for its overcommercialisation of heritage (Graham et al, 2000;
Timothy and Nyaupane, 2009).
Cultural heritage extends to physical structures and
built heritage can be costly to preserve and maintain
(Greffe, 2004), but has the potential to earn income
directly and indirectly. It can enhance city life and
urban landscapes, contributing to place distinctiveness
and exploited in branding and promotion to draw
investors and tourists (Ebbe, 2009). As well as being
tourist attractions, conserved buildings are capable of
adaptation to exercise functions besides those for
which they were intended and thereby yield additional
revenue (Langston et al, 2008). A possible option,
especially in destinations where there is likely to be
demand from business and leisure travellers, is that
of hotel accommodation. The ensuing diversity is
revealed in the former castles, private residences and
religious premises listed by the Historic Hotels of
America, a programme of the National Trust for
Historic Preservation, and its European partner
(Historic Hotels of America, 2010).
Instances of adaptive reuse of historic buildings by
hotels are fewer in South East Asia, but the number is
reported to be growing and encompasses the luxurious
(Luxury Travel Magazine, 2010) and more modest
(Tan, 2009). Certain of the regions hotels have
acquired fame as a result of their long histories as
hotels (Peleggi, 2005) and, although there has been
no change of use, extensive renovations and alterations
have been necessary for the satisfaction of the needs of
modern travellers. One example is Raffles Hotel in
Singapore which was constructed during the years of
British imperial rule (Henderson, 2001) while the
Fullerton Hotel, once colonial administrative offices
(Fullerton Heritage, 2010), illustrates adaptive reuse
in the city state. Not all buildings transformed into
hotels are grand in scale and opportunities afforded
by what remains of indigenous or vernacular architecture are being pursued in Singapore and neighbouring
Malaysia (Chang, 2010; Chang and Teo, 2009).
Guests are usually promised and look for a singular
experience from such hotels, an advertising message
and customer expectation which typify boutique
hotels in general.
Smaller hotels of individual character, qualities
which are commonly associated with twenty first century boutique hotels, have a long standing role in
accommodation provision (van Hartesvelt, 2006).
However, prevailing notions of what constitutes a boutique hotel have been shaped by events since the 1980s.
Ingredients of design and stylishness have become
more central, epitomised by the opening of Morgans

Hotel in New York in 1984 by Ian Schrager and Steve

Rubell which is frequently hailed as a turning point (de
Klumbis and Munsters, 2005). The concept and
attempts at execution acquired prominence thereafter
initially in major North American and European
cities (Sarheim, 2010) and subsequently spread outside
the West, not least in South East Asia (url.biz, 2010),
evolving over time. A spectrum of properties around the
world is now loosely labelled boutique hotels (OBrien,
2006) and terms such as lifestyle and design are
employed interchangeably with boutique and occasionally preferred by hoteliers, indicative of the problems
of definition.
Uncertainties about what actually defines a boutique hotel are felt by consumers and industry practitioners (Mintel, 2002), but there tends to be
concurrence about key dimensions (Aggett, 2007;
Lim and Endean, 2009). Based on this consensus, a
boutique hotel can be defined as a property with no
more than 100 rooms which is not affiliated to a large
chain, emphasises personal service and strives to be
unique. At the same time, some parts of this description may be challenged; for example, much larger
hotels have been classed or class themselves as boutique. Smaller capacities do, however, make it easier to
deliver the high degree and quality of personal service
which are other selling points. With regard to independence, self-styled boutique chains have emerged and
are exemplified by Kimpton which has 56 hotels in
the USA (Kimpton, 2010) and the Hotel du Vins
14 establishments in Britain (Hotel du Vin, 2010).
Multinational hotel companies too are active and
have introduced speciality brands, to which selected
boutique hotel attributes are ascribed; one of the pioneers was Starwood which launched W Hotels in 1998.
Marriott International opened its first Edition hotel, a
partnership with Ian Schrager, in late 2010 and plans
to have 100 such hotels around the world by 2018.
Another Marriott scheme, dating from late 2009, is
its Autograph Collection which is to be a consortium
of independent hotels. Members will retain their name
whilst paying for access to the companys sales and
marketing system and loyalty programme. There
are to be six categories of urban edge, boutique arts,
exotic retreats, resorts, gaming and iconic/history
(Euromonitor, 2009a), symptomatic of the mounting
competition from multinationals faced by niche businesses. Hyatt and Intercontinental Hotel Group have
spoken about expanding their respective Andaz and
Indigo brands and Hilton announced a Denizen brand
in 2009, expected to welcome the first guests in 2011
(Manson, 2009). Doubts about the viability of boutique
hotel operations by the major groups have been voiced,
however, and industry observers have commented on
the contradictions inherent in the idea of a multinational

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chain boutique hotel. They point to the difficulties of

constantly devising and implementing original ideas
and delivering the necessary level of personal service
(Seetharam, 2010). Larger companies may also be lacking in nimbleness and flexibility pertaining to innovation, design and un-standardised, quirky products so
that they can only follow and not lead in this sector
(Manson, 2009, p. 30).
There is less disagreement about the final core trait
of a distinctive personality, frequently accompanied by
protestations of uniqueness which can be expressed in
customised design and decoration. Famous designers
and artists may be hired, with an element of theatricality and theming about the outcomes. Uniqueness is
often embodied in striking modern architecture or
buildings and settings of historic significance (Chang
and Teo, 2009) as remarked upon previously. Keeps
(2006) proposes that a new generation of hoteliers has
opted for low key historical authenticity when appropriating heritage buildings, although what is authentic
is a matter of opinion and perhaps dispute (Chang,
2010). According to an American independent hotelier overseeing the conversion of a 1929 Hollywood
Art Deco landmark, the trick is reinterpreting a
buildings history into something that works now
while connecting guests to the past (Keeps, 2006).
One approach is to incorporate contemporary or futuristic furnishings and fittings into historic structures in a
fusion of past, present and future (Munsters and de
Klumbis, 2005).
Other noteworthy features offered by many boutique hotels, although not one which defines them
all, are the latest in communication technologies
and a fashionable restaurant or bar. Otherwise, guest
amenities are restricted by space constraints. Sites are
predominantly urban and the townhouse appellation
can also replace boutique, yet some locations are in
the countryside and coastal resorts. Promotion seems
directed primarily at those aged under 55, both corporate and leisure markets, with little attention given to
families and the more mature. Emphasis is often on
experiences, ambience and meeting lifestyle aspirations. Prices fall into middle and upper bands, corresponding to a rating of between three and five stars
(KPMG, 2010; Pricewaterhouse Coopers, 2006).
Enthusiasm for latter day types of boutique hotel
has been attributed to consumer dissatisfaction with
the uniform physical and intangible facets of conventional hotels and desire for novelty and a more personalised experience (McIntosh and Siggs, 2005;
Pricewaterhouse Coopers, 2005). The hotel industry
as a whole, in search of new business, has attempted to
capitalise on buoyant demand while the boutique hotel
model has a special appeal to independent owners.
There are no expensive management or franchise fees

and there may be a greater choice of venue and scope

for creativity and originality with possibilities for creating exciting new spaces from existing buildings. Upon
opening, running costs will be reduced compared to
those of more sizable hotels given the smaller number
of staff, fewer facilities and lower utilities bills.
Organisational structures are also less rigid. Some studies have concluded that there are above average returns
and profits to be garnered in the boutique hotel market,
with potential to charge a lucrative premium (Lea,
2002; Parets, 2004; van Hartesvelt, 2006).
However, there are disadvantages to be addressed
related to an absence of the economies of scale and
power enjoyed by larger hospitality corporations
(Anhar, 2001; Assaf et al, 2010) whose global distribution systems, for example, give them a competitive
advantage. Funding has still to be raised and could be
considerable in the case of prime real estate, new construction or redevelopment and designer fees. The
hotel industry is extremely competitive and vulnerable
to unexpected events which have the ability to threaten
the survival of smaller enterprises in particular
(Gammack et al, 2003; PricewaterhouseCoopers,
2008). There are strong pressures to discount in reaction to falling demand, although evidence from the
period since the onset of the global recession in 2008
suggests that these are now resisted and that the tactic
is ineffective in protecting revenues (Kimes, 2010).
Nonetheless, independent hoteliers may turn to intermediary online distribution networks during periods of
economic difficulty, leading to the reserving of blocks
of rooms and their sale at discounted prices which
could have a damaging effect on reputation and
image (Albazzaz et al, 2003). There are also risks of
boutique hotels reaching the stage of being simultaneously over designed and generic (Keeps, 2006),
alienating prospective guests. Avant-garde design
may soon lose its cutting edge and popularity founded
on fashion trends can prove fleeting.
The success of boutique hotels would thus seem to
depend upon defining attributes of smallness, service
and independence. Individuality is the fourth essential
dimension based on site and property details which are
able to exercise sustainable appeal. It could be argued
that it is size and assertions of difference and uniqueness, if not always their attainment, which particularly
distinguish boutique establishments as hotels in general compete in the arena of service. The application of
these conclusions to Singapore and the extent to which
it has been affected by the boutique hotel phenomenon
is examined in the next section which begins with a
brief introduction to tourism demand and accommodation in the country in order to set the scene. An
evaluation of the part played by heritage buildings in
determining the nature of the boutique hotel sector,

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alongside the contribution of design, then follows

before some concluding remarks. The focus is on the
situation in mid-2010, although some reference is
made to developments in preceding years.

The accommodation sector and boutique

hotels In Singapore
Singapores international tourist arrivals reached a
record of over 10 million in 2008 and declined thereafter due to the impact of the global recession, but
recovered in 2010. Most tourists come from within
the Asia Pacific region and leisure is the primary motivation for 39% of all visitors, business travel accounting for 30% of total movements (STB, 2010). Almost
60% stay at hotels which depend on overseas markets
as domestic tourism is very limited. A total of 109
hotels with 32,000 rooms were formally licensed or
gazetted in 2009, 40% of which were classified as
small (less than 201 rooms) by the Singapore
Tourism Board (STB), in charge of marketing and
strategy. The remainder were deemed very large
(more than 600 rooms), large (401-600 rooms) and
medium (201-400 rooms) with respective shares of
10%, 22% and 33% (STB, 2009). In addition, there
are about 125 more basic non-gazetted hotels with
almost 7,000 rooms (Mak, 2008). The STB also
categorises gazetted hotels into luxury, upscale, midtier and economy on the grounds of their prices, location and product characteristics. Boutique hotels are
not recognised as a discrete class of accommodation,
but there is an assumption that they belong to the
upscale group which covers hotels with boutique
positioning in prime and distinctive locations (STB,
2009, p. 55).
Priority has traditionally been given by the STB to
ensuring an adequate supply of international chain
accommodation and well known companies are all
represented. However, there is appreciation of the
danger of an imbalance and consequent efforts to
widen options. The Urban Redevelopment Authority
(URA), responsible for long term planning, takes decisions about land and property use and therefore is
influential in new hotel development. The URAs
stance has been revised in the past decade to foster
variety, demonstrated by its approval of backpacker
hostels and accommodation at ventures in semi-rural
areas. Restrictions on changing usage of buildings have
been relaxed and more state-owned plots have been
released for hotels of various types (URA, 2010a).
Conservation also falls within the remit of the URA
which decides upon structures and areas worthy
of protection. Such designation does not preclude
adaptive reuse which the URA enthusiastically advocates, including for hotels, with the intention of

preserving buildings while allowing them to fulfil a

contemporary function and generate revenue (URA,
2010b).
The above circumstances, together with the trends
outlined previously and an entrepreneurial spirit
amongst some hoteliers, have favoured the boutique
hotel sector in Singapore. Several openings have
been reported in the past decade and the definition
proposed earlier can be used to calculate the
number. Criteria are size (100 rooms or less), independence (excluding those with affiliations to international and regional chains) and individuality
(manifest in positioning and attention given to the subject of difference in promotion and public relations).
Personal service proves more difficult to ascertain, but
can be measured by references to it in advertising
materials. Applying the criteria, a total of 11 boutique
hotels were judged to be operating in the middle of
2010. The largest hotel has 80 rooms and ten have
no more than 50 rooms, the smallest with 22. None
are connected to multinational chains, although three
hotels share the same owner, and all refer to service in
their marketing. Attempts at differentiation are very
striking and it is conceived of and communicated in
terms of heritage and design, either separately or
in combination, which are usually linked to location
in a way which is elaborated on below.

Heritage and design matters

Eight of Singapores boutique hotels are found in the
officially designated Historic District of Chinatown
and adjacent streets. The area has its origins in a
town plan initiated by Stamford Raffles who claimed
Singapore for the British East India Company in 1819,
after which it thrived as an international port and
became a British colony initially governed as part of
the Straits Settlements. The Chinese community was
allotted land to the south of the river and an ethnic
enclave was established which now borders the Central
Business District (CBD). The towering skyscrapers
of the CBD contrast dramatically with Chinatowns
shophouses, a traditional form of architecture
common to many South East Asian towns and commercial centres, in which the ground floor was devoted
to commerce and the upper storeys to private residence. Shophouse styles incorporate Early (18401900) through to Art Deco (1930-1960) (URA,
1995a) and overall their individuality contributes to
Chinatowns popularity with tourists. However,
although a conservation zone where certain regulations apply, new tourism and non-tourism business
activity has been officially encouraged and provoked
criticisms of gentrification, over-commercialisation
and loss of authenticity (Henderson, 2005).

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Nevertheless, Chinatown remains a singular district

in marked comparison to the internationalised and high
rise landscape of much of built Singapore. It is this
factor, alongside urban planning agendas, which helps
to explain the concentration of boutique hotels there.
The special qualities of Chinatown are mined in hotel
advertising redolent with phrases such as rich history,
old world charms and cultural traditions of the East.
Seven of the hotels occupy converted shophouses which
are variously described as a stately 1900s heritage
building (The Club, 2010), old world architecture
and typical of old Chinatown (G Hotel, 2010). One
property proclaims itself to be situated in the midst of a
once-infamous street of days gone by which still
evokes memories of rickshaw pullers and ladies of the
night, opium dens and past delights (Keong Saik
Hotel, 2010). Another, originally owned by a coolie
who rose to be a wealthy nutmeg trader, reflects the
sentiments of the old spice merchants, depicting the
typical trades of the early Chinese migrants (The Inn
at Temple Street, 2010).
Reminders of the heritage of the hotels are largely
confined to the building facades and the neighbourhood, although a series of archival photographs hangs
on the walls of one hotel. In general, guests are
informed that, once inside, modern comforts and technology are readily available alongside excellent service.
The three newest hotels are designer-driven and
include the New Majestic where none of the 30 rooms
and five suites is the same. Five Singapore designers
conceptualised the suites, one selecting a box motif to
symbolise the constraints of life in the country, and site
specific pieces of art were commissioned from nine
local artists. The Club, opened in 2010, purports to
stylishly blend contemporary minimalism and antique
oriental highlights and achieve a modern look with a
colonial touch (The Club, 2010). It has a black and
white colour scheme and houses work by local artists
such as a larger than life statue of Raffles whose head is
obscured by swathes of flimsy fabric. A third hotel
boasts a nouveau chic interior with 32 individually
designed rooms containing a mix of classical designer
and retro vintage furniture (Hotel 1929, 2010) and two
specially designed suites.
The hotelier behind the New Majestic and Hotel
1929 chose Little India, another conserved Historic
District full of shophouses, for his latest venture.
Little India originated in the early nineteenth century
and evolved into a hub of Indian culture and trade
(URA, 1995b). It is shabbier and has seen less intervention and redevelopment for tourism than
Chinatown, despite a proliferation of budget hostels,
endowing the streets with an air of genuineness and
vitality (Chang, 2000). The new hotel started operating in 2010 and professes to be left-field and totally

experimental in a bustling cultural enclave where

Indian immigrants once settled. The building, from
the 1920s and formerly a school, now comprises thematic levels conceptualised by four design companies.
These are unrelated to the building and environs with
the exception of the Lobby Level which is named
industrial glam and purportedly represents a juxtaposition of the surrounding setting and contemporary
design (Wanderlust Hotel, 2010). Rooms are also
themed and much is made of the hotels lighting, furniture and artworks.
Heritage is a peripheral facet of the eighth hotel, on
the outskirts of Chinatown, which is a twenty first century construction completed in 2009. It is marketed as
an urban sculpture of unique architecture, embellished with a private collection of original artworks
specially commissioned to reflect the hotels flora and
fauna theme. The past is, however, acknowledged in
allusions to classic design and a location which has an
eclectic blend of Art Deco and Straits Settlements
style (Wangz Hotel, 2010). The two properties outside Chinatown, one in the CBD and the other near to
the Civic and Colonial District, do not have a heritage
component and highlight instead their modern architectural and interior design features together with
superior service.

Conclusion
Boutique hotels currently constitute a very minor proportion of Singapores total hotel stock and an even
smaller share of rooms. Such a distribution would
seem to conform to the pattern in other capital cities
and untapped potential in general has been noted
(Euromonitor, 2009b). Nevertheless, and in correspondence with wider trends, there has been an upsurge in
investment in Singapore in the past decade. Further
openings are due in 2010-2011 and more properties
are planned in the longer term. These moves are a
response to growing demand, apparent throughout
much of the world, and specific changes to the countrys
hotel industry operating environment which have given
rise to new opportunities and made possible a greater
diversity of provision. The development process has
been assisted by the policies of government and its
agencies and entrepreneurs have played a part in innovation and the extension of hotel choice.
Singapores boutique hotels adhere to the defining
characteristics depicted in Figure 1 and that of individualism is pre-eminent in marketing and publicity.
Hoteliers appear particularly enthusiastic about heritage as a source of such distinctiveness, with the capacity to contribute to the exceptional settings and
experiences inherent in the boutique hotel product.
Heritage is also a valuable asset to be exploited in

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Tourism and Hospitality Research 11(3)

References
Size
Service
Independence

Boutique hotel
defining
characteristics

Individualism
Modern
design

Heritage
property/
location
Hip heritage

Figure 1. Boutique hotels and hip heritage.

advertising, but it is deemed insufficient alone to

entice sophisticated guests who are given reassurances
about standards of facilities and service. Buildings with
a history additionally act as spaces for the implementation of contemporary design concepts and displays of
art. The desired effect is one of hip heritage, as shown
in Figure 1, and to be perceived as hip is something to
which nearly all the boutique hotels, but especially the
designer-led establishments, aspire.
Analysis of the boutique hotel sector in Singapore
reveals the attractiveness of certain heritage buildings
and locations for operators, exemplified by shophouses
and Chinatown respectively. The reaction of guests
also seems positive (Lim et al., 2010), although this
is a topic for a second paper. Other destinations in
South East Asia possess similar resources on which
they too are drawing and it is likely that the adaptive
reuse of vernacular architecture for boutique hotels,
with heritage or hip heritage themes, will become
more widespread. Nevertheless, there are challenges
to confront of heavy costs and ensuring satisfactory
adaptations which respect the architectural integrity
of buildings and are in harmony with the surroundings
while having customer appeal. Many of the regions
cities are facing intense development pressures and
conservation of historic structures and areas, often
on prime real estate land, tends to be allocated a low
priority. The future of boutique hotels which rely on a
heritage element is thus partly dependent on the extent
and effectiveness of built heritage protection.
Conversion can be a threat to that heritage unless
properly managed, but the interests of business and
conservation may converge in this particular branch
of the hospitality industry with scope for productive
and mutually beneficial synergies.

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Author Biography
Joan C. Henderson is an Associate Professor at
Nanyang Business School, Singapore, where she teaches on the Hospitality and Tourism Management
programme. Previously, she lectured in the subject in
the UK after working in the public sector and private
industry there. Current research interests include the
uses of heritage as a tourism resource and tourism
development and marketing in South East Asia.

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