The Business Times | 05 April 2013
Buyer tipped to be Ascendas Hospitality Trust; price around $300 million
Park Hotel Clarke Quay is expected to be transacted imminently and talk in the market is that the price is around $300 million.
Industry watchers say the buyer is a real estate investment trust, with Ascendas Hospitality Trust (A-HTrust) tipped as a prime candidate.
The stapled group, comprising a Reit and a business trust, was floated on the Singapore Exchange last July and its portfolio comprises 10 hotels in Australia, Beijing and Tokyo - but none in Singapore.
Assuming Park Hotel Clarke Quay changes hands at $300 million, that would work out to around $900,000 per key. The 336-room property, which opened its doors in 2009, is owned by Park Hotel Group, controlled by the Law family of Hong Kong.
A seasoned hotel analyst described the pricing for Park Hotel Clarke Quay as within expectation, given that last October, Hotel Grand Pacific - an older but freehold property along Victoria Street (opposite Bras Basah Complex) - changed hands at about $800,000-plus per key.
Park Hotel Group, established in 1961 in Hong Kong, moved its headquarters to Singapore in 2005. The following year, it took part in an Urban Redevelopment Authority tender and clinched the 42,503 sq ft site which it has since developed into Park Hotel Clarke Quay.
The $55.5 million the group paid for the 99-year leasehold plot translated to a unit land price of $466 psf per plot ratio (psf ppr).
At the time, the group had estimated its all-in development cost at about $125 million for a 350-room hotel - or nearly $360,000 per room.
Besides the Clarke Quay property, Park Hotel Group owns two other Singapore hotels - Grand Park Orchard and Grand Park City Hall.
In addition, it has clinched contracts to manage hotels for third parties. The group will manage a 300-room hotel being developed above Farrer Park MRT Station by RB Capital Hotels as well as a hotel being developed by Chip Eng Seng in Alexandra Road next to Ikea.
A few years ago, Park Hotel Group had revealed plans for a Reit listing here.
On the stock market yesterday, A-HTrust ended unchanged at $1.025. It was floated at 88 cents per stapled security.
A-HTrust's seven Australian hotels are: Courtyard by Marriott North Ryde, Pullman Sydney Hyde Park, Citigate Central Sydney, Novotel Parramatta, Sebel & Citigate Albert Park, Pullman & Mercure King George Square and Pullman Cairns International.
It also owns Ibis Beijing Sanyuan, Novotel Beijing Sanyuan as well as Ariake Sunroute in Tokyo.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)