Thursday, January 3, 2013

Joo Chiat hotel put up for tender

Straits Times
Jan 03, 2013

A hotel in Joo Chiat is up for sale by tender with a guide price of $75 million to $80 million.

The 99-year leasehold four-storey hotel, owned by Classic Holdings, is part of the Hotel 81 chain. It is bounded by Onan, Joo Chiat and Changi roads, and has 115 hotel rooms.

Marketing agent Knight Frank said investors could reposition the hotel by reconfiguring and adding more rooms, subject to approval from the authorities.

"Assuming an average room size of 18 sq m and an efficiency of 65 per cent, there is a potential to yield 194 rooms," said Mr Ian Loh, Knight Frank's director and head of investment
"It also presents an opportunity for the hotelier to run it as a flagship hotel."

Some significant transactions in the area over the past two years include the former Lion City Hotel being sold for $313 million, 55 Changi Road sold for $44.9 million and New Changi Hotel sold for $53.2 million.

Another Government Land Sales commercial site at the junction of Paya Lebar Road and Eunos Road 8 was tendered for $585 million. It has been redeveloped into Paya Lebar Square.

"Situated within close proximity to the future Paya Lebar commercial hub and Geylang Serai heritage area, the hotel has an edge to potentially target business travellers and tourists in this area," Knight Frank said in a statement yesterday.

The area is promising and will be a major commercial hub in the coming years, added Mr Loh.

"Thus the subject property will benefit from the upcoming transformation and rejuvenation of the Paya Lebar and Geylang Serai area," he said.

The tender closes on Feb 5.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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