Genting Singapore

[weijian]

In general, I have noticed that there is a mismatch between practical useful life and accounting useful life of hotel reno/decor. Globalization, user reviews and an emphasis on experience seem to have made customers more picky - making practical useful life much shorter than accounting useful life, if the hotel wants to "remain fresh".

Minutes of the Thirty-Ninth Annual General Meeting

Mr Tan explained that the net profit figure accounted for depreciation. He added that RWS is progressively refreshing and redeveloping some of its existing assets. Taking Hotel Ora as an example, the hotel was not fully depreciated as hotels normally have a long life of 15-20 years. The asset refreshment was intended to attract more affluent visitors to the integrated resort, and as such, there is a need to upgrade the integrated resort’s hotels to that standard. Hence, there will be an acceleration in depreciation to take into account the shortening of the assets’ useful life.

https://links.sgx.com/FileOpen/GENS%20-%...eID=803760

[CY09]

Different hotels will have different practical useful life for their hotel due to their clinetile.

A certain listed SGX hotel clientile are lower value travellers and illegal vice occupants in Singapore. Hence its hotel does not require full depreciation in a short timespan because the rooms are "structured" more for functionalty over keeping trends. There is a difference in clientile between a 3 star and 5 star hotel, hence useful lifespan will vary.