Orchid Hotel at Tanjong Pagar up for sale

Business Times: Fri, Oct 21
THE Orchid Hotel Singapore in the Tanjong Pagar area is on the market, with a price expectation of $250 million and above. This reflects a pricing of at least $920,000 per room for the 272-room hotel, which soft opened in July. It is on a site with…
THE Orchid Hotel Singapore in the Tanjong Pagar area is on the market, with a price expectation of $250 million and above.

This reflects a pricing of at least $920,000 per room for the 272-room hotel, which soft opened in July. It is on a site with a remaining lease of about 95 years.

The property is being sold with vacant possession, that is, without any ongoing management contract and brand, which would provide a rare opportunity for a hotel owner-operator or investor to acquire and rebrand the property, explains Tom Oakden, executive vice-president of investment sales at Jones Lang LaSalle Hotels, which is the exclusive agent for the sale of Orchid Hotel.

Separately, nine strata office units adding up to about 10,600 sq ft on the second floor of the 20-storey hotel are also available for sale. Three of these units are larger in size and could potentially be converted to function rooms, subject to approval from the relevant authorities. The $250 million and above pricing for the hotel rooms excludes the strata office units.

The retail podium on the first level comprises 19 strata retail units which were sold earlier and are not included in the hotel sale. The hotel rooms are spread from the fourth to 20th floors. Carparking lots are in two basement levels.

JLL Hotels will be marketing the sale of Orchid Hotel through an expressions of interest (EOI) exercise that is slated to close in early November.

Orchid Hotel is owned by Orchid Hotel Pte Ltd, whose shareholders are Chng Gim Huat and Chng Beng Siong. They developed the hotel on a 99-year leasehold site that they bought for $97.07 million in 2007.

Earlier this month, CTC Tourism Holdings signed a deal to buy Park Regis Singapore at New Market Street/Merchant Road which values the property at $270 million. Australia-based StayWell Hospitality Group will continue to manage the hotel. The transaction comprises the 203-room Park Regis hotel and the adjacent office block with about 42,000 sq ft of net lettable area. Analysts say that assuming the offices are valued at $2,000 per square foot, the valuation for the hotel rooms would amount to $916,000 each. A $1,900 psf valuation for the offices would reflect a valuation of $937,000 per hotel room.

Source: Business Times © Singapore Press Holdings Ltd

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