I stayed at the IC last Nov using points/free night and liked it very much. The location is quite good IMHO.
Is lounge access really important? OP doesn't seem to indicate that is something he's after. I was able to get 2PM check out just as a plat. There are plenty of places to get breakfast nearby, especially the basement level of Bugis Junction which is connected directly to the hotel.
The Arab Quarter is a short (but sweaty) walk. So is Little India. I walked a lot but the MRT is accessible via Bugis Junction as well.
I was pleased with my stay. I thought the room could have used an update but it was comfortable enough.