Marina Square redevelopment could push hotels to stand out, boost footfall at nearby malls: Experts
Neighbouring malls could benefit from displaced shoppers and tenants when Marina Square closes next year, but changes to connectivity and the inability to replicate some of its family-oriented offerings could see some spending move elsewhere.
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SINGAPORE: Existing hotels around Marina Square may have to work harder to stand out as the complex undergoes a major transformation that will eventually add another hotel to the precinct, experts said.
Neighbouring malls could also gain shoppers and tenants during Marina Square’s closure, potentially pushing up rents, although some spending could move elsewhere, they added.
The mall will close on Mar 31, 2027, with the redevelopment expected to be completed by 2031.
Three new towers will be added to the complex, bringing luxury homes, serviced apartments, offices and a new 304-room hotel.
The three existing hotels there – Pan Pacific Singapore, Parkroyal Collection Marina Bay and Mandarin Oriental Singapore – will remain open throughout the works.
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HOW EXISTING HOTELS ARE RESPONDING
Prof Lawrence Loh from the Department of Strategy and Policy at the National University of Singapore Business School said existing players would need to assess what the new hotel could offer.
“The hotels there, especially on the side of Marina Square, will need to go back to the drawing board and make an evaluation based on what kind of hotel will possibly come out,” he said.
Mandarin Oriental Singapore said it welcomes the transformation and plans to curate more ways for guests to explore the city and its culture, building on existing offerings such as Vespa sidecar rides.
Pan Pacific Singapore and Parkroyal Collection Marina Bay, meanwhile, will continue to build on their existing brand positioning, guest experiences and service strengths, said Singapore Land Group (SingLand), which owns Marina Square.
SingLand has said the new hotel would complement the existing properties and cater to a wider range of guests, stay patterns and lifestyle needs.
NEIGHBOURING MALLS COULD BENEFIT
The closure of Marina Square could also change shopping patterns in the area, with neighbouring malls potentially seeing more visitors as shoppers look for alternatives.
Mr Lee Sze Teck, senior director of data analytics at Huttons Group, said malls such as Suntec City, Millenia Walk and CityLink Mall could benefit from the shift.
“We may see some of the tenants, especially in Marina Square, looking at some of the vacant spaces in these malls, whether it’s something that they will want to consider moving over, especially if they have an established clientele in the Marina Bay precinct,” Mr Lee said.
Prof Loh said Suntec City and Millenia Walk remain accessible by public transport and have ample parking, so local shoppers should have little difficulty switching to other malls.
Neighbouring malls could also adjust their tenant mix or offerings to fill some of the gaps left by Marina Square during the closure, he added.
He noted that Marina Square caters to families with children, and pointed to demand for facilities such as preschools and weekend enrichment classes as an area where neighbouring malls could make adjustments where feasible.
The increased demand for retail space could in turn put some upward pressure on rents at neighbouring malls, Prof Loh said.
“If the tenants can afford to pay … (this) will then push up the bidding for shops. And I think if there’s a net positive effect due to the movement, in the same vein, the rentals will naturally be increased a little bit.”
He said the length of the redevelopment period could give neighbouring malls enough time to make changes and capture some of the traffic displaced from Marina Square.
SOME SPENDING COULD MOVE ELSEWHERE
But not all of Marina Square’s traffic will necessarily shift to neighbouring malls.
The closure could change how shoppers move between malls in the area, Mr Lee said. Some journeys could take longer, which may discourage some shoppers from moving from one mall to another.
While local shoppers may find it relatively easy to switch malls, hotel guests could be more affected by changes in connectivity during the redevelopment, Prof Loh said.
Depending on the temporary links put in place, less convenient routes to Suntec City and Millenia Walk could affect this source of footfall.
SingLand said there could be some impact at different stages of the redevelopment.
Measures will be put in place to minimise inconvenience to hotel guests, including managing access and guest flows, coordinating the timing of works where possible and providing information on changes that could affect their stay, it added.
Mr Lee said there could also be limits to how much neighbouring malls can adapt their offerings, depending on factors such as the availability and configuration of space.
If facilities such as indoor playgrounds cannot be replicated nearby, some families with young children could instead head to malls elsewhere that offer them.
That could also take other spending away from the Marina Centre area, including at food and beverage outlets and other retailers, he added.
Still, Mr Lee expects the wider precinct to continue drawing shoppers.
He said malls in the area remain connected to one another, while shoppers arriving by public transport would continue to have direct access to them.
“We do not see the appeal of the Marina Bay precinct being affected by the closure of Marina Square,” he said.
Source: CNA/mp(oc)
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