Lower thirds: 

0:03  Report by / Patrick Fok
0:56  Mindy Leong / Guest
1:25  Mohd K Rafin, CEO / Cube Hospitality
2:00  Dr. Natt Srinara / Lecturer EHL Hospitality Business School
2:45  Sonia Tay, COO / Cube Hospitality

Script:

With its unique sights and sounds, and Southeast Asian flavours…

Singapore is a popular destination for travellers from around the world.

But it’s also one of the most expensive cities for visitors to come to…

…and above budget for many backpackers.

00:23
“The conversion rate for the New Zealand dollar’s not great!”

00:25
According to Statista data, the average cost of rooms in hotels here was about $220 per night in 2024.

As accommodation rates soar, some hospitality industry players are poised to capitalise.

00:40
This heritage building located along Singapore’s historic Boat Quay district may only be three-storeys high,

But inside are enough capsules to host more than 100 guests when at full capacity… with each single unit costing around $60 a night.

00:56
MINDY LEONG, GUEST 0141 (INSIDE ONE OF THE CAPSULES)

“I think the whole concept about a social environment for the consumers is something I have never experienced before.”

01:02
For travellers willing to forego space, this concept offers a bar and terrace where guests can mingle with one another,

and amenities counter where guests can pick up essentials like earplugs and vanity kits, and shared, contemporary shower and toilet facilities.

01:19
But its operators say it stands out from other, basic capsule concepts with luxury touches.

01:24
MOHD K RAFIN, CEO/ CUBE BOUTIQUE CAPSULE HOTELS 0643

“It’s all very detailed in terms of design. The choice of lighting, the choice of marbles, the chandelier effect.” 

VISION: CAPSULE INTERIOR VARIOUS, TOURIST HOTSPOTS WITH CAPSULES

01:34
Originating in Japan in the late 1970s, capsule hotels are taking off in Singapore, and can be found in several of the city’s tourist hotspots.

01:42
Cube Hospitality’s line of capsules launched in 2016.

The group’s since expanded to comprise four properties in total, 

and has plans to take the concept overseas.

01:53
Space-saving aside, capsule hotels are also able to cut operating costs with reduced staff headcount.

01:59
DR. NATT SRINARA, LECTURER EHL HOSPITALITY BUSINESS SCHOOL 0534

“They keep the team very lean, maybe 3-4 people running the entire hotel and what that does is it brings down the operating costs for labour down to below 25% which is the sweet spot, which is where you want to go.”

02:13
In Singapore’s tight labour market, it’s a key cost saving.

To keep things running smoothly, the group relies on mobile technology.

02:21
Guests can complete ID verifications and check-in via an app, and pick up keys the minute they arrive.

The app also allows them to take advantage of discounts at local eateries and attractions.

02:32
Still, interaction is a critical component of the experience.

The front desk is always manned.

02:39 starts in off
SONIA TAY, CUBE HOSPITALITY/ COO
“The essence of human touch will always be around and we will balance the technology that we use to make sure it’s not such a cold place, because we are still promoting community-driven accommodation.”

02:59
According to TechSci research the global capsule hotel market is expected to hit $430 million by 2030, up from $260 million in 2024.

As the cost of travel and accommodation rises, capsules could become more common… but with increased variety of quality and experience.

END