My family and I stayed at the Fragrance Hotel Bugis in Singapore on the suggestion of a friend, and we're so glad we did! The room was small, but very clean. The airconditioner functioned efficiently, turning the room cold in just a few minutes! The bathroom was also small, but very functional. The water heater supplied enough hot water for long showers for the three of us.
We came back from a whole day of sightseeing to find the room cleaned very well, the bed made, supplies replenished and bathroom towels replaced with fresh ones.
The hotel also has provisions to hold your luggage for you should you decide to check out early and still go sight-seeing before going to the airport. (We checked out around 8am to go to the Universal Studios, and came back for our luggage around 9pm.)
The hotel is a very basic, no-frills hotel that I can recommend to any traveller going to Singapore.

Luxury because the hotel is quite new, very clean and includes breakfast. Backpacker because the bathroom is configured as shower over toilet. I stayed in a Superior Room which was quite small and didn't have any windows. There is very little space around the bed and not enough area to store your things. I was alone and I think two people would have a hard time not bumping into each other. The bathroom is quite spacious and has a liquid soap dispenser. The daily breakfast is nothing to look forward to but will get you through the morning. You get two glasses of water every time they clean the room. There is a big LCD TV with limited channels. The bed is quite hard and the sheets thin. Pillows are soft; not made of foam. Air conditioning was very good.

We stayed there for 4 days 3 nights. Even though the room is small, it is clean and equipped with basic needs. Coffee, kettle, hair dryer, TV, DVD player, hot shower, towel, toothbrush and shower caps provided.
Include daily breakfast but options are limited. Coffee, tea, tasteless orange juice, bland fried rice, fried mee with sausages and hash browns. They didn't cook enough, ended up we have to request them to cook more.
Next to 7Eleven store, bus stop right in front of the hotel.