Moondog

No major differences between transit hotels. I would probably pick the one in terminal 2 if I had a choice.

If you have not been to Singapore before go into the city. You can get a quick flavor, find some good food and meet some locals while eating.

Moondog:

Now I see your new thread here. Ask any questions below and I'll try to answer them.

Singapore tends to be quite warm and humid even during the night. From previous experiences it rarely drops below 80F. Some shops in the transit area stay open most if not all of the night. I was transiting through there not that long ago after 2am and did a bit of shopping which was a nice experience with friendly and polite staff. With such pleasant surrounding who can resist but take a nap?

i would also use the few hours to catch a little bit of singapore's nightlife. most of the bars close at 3:00am, but there are spots that stay open longer. taxis are not a problem at all after midnight, so you should be able to get one easily whenever you want to switch locations.
after 3:00am, you can still get drinks at mitre hotel behind orchard road (every taxi driver knows it) and watch the crowd. it's a bit shabby but famous for after-hours. or you can go and get something to eat at one of the many 24-hour hawker centres (Newton Circus or Lau Pa Sat). east coast park for sunset is nice, too.
if you really can't stay awake you can always book a hotel room for a few hours (i think the hotel 81 chain in geylang rents clean, standard rooms by the hour and is quite cheap). have fun!

Thanks again for all the advice. Just in case your curious, I've decided to go with the group consensus and hit the town. I'll be there on a Wednesday night, so a lot of stuff might be closed, but I'll try to make the most of what's on offer. I'll try to provide a mini trip report after the fact, assuming my travels are worth documenting.

One thing to be prepared for is the taxis charge a surcharge between midnight and 6:00 am. Can't remember how much it is but I remember it was no small surcharge.

the surcharge is 50% on top of meter fare. but taxis are not that expensive anyway and at least you'll get one easily at those hours (looking for extra cash).

enjoy-lah!