Noise = Quite Bad
I stayed there last Friday night (June 17th). The noise was a serious issue. In the hotel’s defense, they gave me ample warning. I ignored the warning and chose to stay in T-2 due to my early flight on SQ (The train between terminals does not start until 06:00). The noise is on and off, but when it was on, it was intolerable and i am a sound sleeper. It must have stopped somewhere around 02:00 as I did manage to get some sleep. The only thing worst than the noise would be no hotel at all. Since both hotels (T1 & T2) book out weeks in advance, sometimes you are lucky to get a room at all – in those cases the room w/noise is better than sleeping in the terminal/lounge.
There is also a La Meridian (Changi Village) about 15 min away by cab.