New Reporter
20-02-24, 11:11
Eight-storey hotel in Geylang up for sale at S$120 million guide price
Feb 20, 2024
AN EIGHT-STOREY hotel at 12 Lorong 12 Geylang has been put on the market via expression of interest for S$120 million, exclusive marketing agent CBRE said on Tuesday (Feb 20).
The guide price translates to around S$2,758 per square foot based on a gross floor area of 43,500 square feet (sq ft). The hotel sits on a freehold site spanning 12,993 sq ft and comes with a lobby, a private parking facility and a total of 184 rooms, of about 175 sq ft each.
The property is situated between the Central Business District and the Paya Lebar sub-regional hub – both of which are commercial nodes, with access to landmarks such as the National Stadium and Paya Lebar Quarter. Nearby expressways include the Kallang-Paya Lebar Expressway and Nicoll Highway.
CBRE associate director of capital markets Joshua Giam said there could be various viable value-enhancement options, subject to approval from relevant authorities.
The incoming buyer could convert underutilised areas such as the indoor car park and back alley into “higher-value” uses such as a cafe-cum-co-working space and an outdoor gym and swimming pool, Giam said.
Refurbishing the asset’s facade, lobby area, common areas and rooms can also help boost room rates. Alternatively, the hotel can be repositioned into a co-living space to capture demand from expatriates and locals looking to live in the city-fringe area.
Meanwhile, CBRE head of capital markets Michael Tay expects the hotel to appeal to buyers such as family offices, high-net-worth individuals, corporates and boutique real estate funds.
“There are only fewer than five hotels that are bigger than 150 rooms in Geylang, and this asset class is tightly held and is rarely available,” he noted.
Recent hotel transactions include Hotel G in Bugis, which changed hands for S$235 million in January, and Citadines Mount Sophia at Wilkie Road, which sold for S$148 million in February.
Foreigners and corporations are eligible to purchase 12 Lorong 12 Geylang. There will be no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty imposed, CBRE said.
The expression of interest exercise will close at 3 pm on Mar 27.
https://www.businesstimes.com.sg/property/eight-storey-hotel-geylang-sale-s120-million-guide-price
Feb 20, 2024
AN EIGHT-STOREY hotel at 12 Lorong 12 Geylang has been put on the market via expression of interest for S$120 million, exclusive marketing agent CBRE said on Tuesday (Feb 20).
The guide price translates to around S$2,758 per square foot based on a gross floor area of 43,500 square feet (sq ft). The hotel sits on a freehold site spanning 12,993 sq ft and comes with a lobby, a private parking facility and a total of 184 rooms, of about 175 sq ft each.
The property is situated between the Central Business District and the Paya Lebar sub-regional hub – both of which are commercial nodes, with access to landmarks such as the National Stadium and Paya Lebar Quarter. Nearby expressways include the Kallang-Paya Lebar Expressway and Nicoll Highway.
CBRE associate director of capital markets Joshua Giam said there could be various viable value-enhancement options, subject to approval from relevant authorities.
The incoming buyer could convert underutilised areas such as the indoor car park and back alley into “higher-value” uses such as a cafe-cum-co-working space and an outdoor gym and swimming pool, Giam said.
Refurbishing the asset’s facade, lobby area, common areas and rooms can also help boost room rates. Alternatively, the hotel can be repositioned into a co-living space to capture demand from expatriates and locals looking to live in the city-fringe area.
Meanwhile, CBRE head of capital markets Michael Tay expects the hotel to appeal to buyers such as family offices, high-net-worth individuals, corporates and boutique real estate funds.
“There are only fewer than five hotels that are bigger than 150 rooms in Geylang, and this asset class is tightly held and is rarely available,” he noted.
Recent hotel transactions include Hotel G in Bugis, which changed hands for S$235 million in January, and Citadines Mount Sophia at Wilkie Road, which sold for S$148 million in February.
Foreigners and corporations are eligible to purchase 12 Lorong 12 Geylang. There will be no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty imposed, CBRE said.
The expression of interest exercise will close at 3 pm on Mar 27.
https://www.businesstimes.com.sg/property/eight-storey-hotel-geylang-sale-s120-million-guide-price