En bloc sale of Excelsior Hotel and Shopping Complex moves to private talks

Apr 20, 2023

THE en bloc tender for Excelsior Hotel and Shopping Complex is closed and private negotiations are now ongoing with interested parties, sole marketing agent Cushman & Wakefield told The Business Times on Wednesday (Apr 19).

The consultancy declined to comment on the level of interest in the collective sale, and did not confirm whether any bids were received.

Located at 5 Coleman Street in the planning district of City Hall, the development was put up for sale at S$458 million on Feb 28.

The price tag works out to a land rate of S$2,503 per square foot per plot ratio, based on the proposed land use of 60 per cent hotel and 40 per cent commercial, with an estimated land-betterment charge and lease-upgrading premium.

Completed in August 1979, the 99-year leasehold property comprises a five-storey podium shopping centre with 99 strata-titled commercial units and a 21-storey hotel tower with 284 rooms. Rooms range from 25 square metres (sq m) to suites of up to 75 sq m.

The consultancy said that some of the retail strata-titled units are held by YTC Hotels and YTC Properties. The two are part of the YTC group of companies, which also owns Excelsior Hotel.

The site spans a total land area of 1,932.2 sq m, with a gross floor area of 21,111.92 sq m, or an as-built plot ratio of 10.93.

At the original reserve price of S$458 million, owners of the commercial units each stand to receive between S$542,000 to S$16 million, Cushman & Wakefield had told The Straits Times.

Cushman & Wakefield’s senior director of capital markets Christina Sim had earlier noted that hotel assets were hit hard during the pandemic, but are now recovering “with a vengeance”.

“The fundamentals for hospitality assets are solid and Singapore’s hospitality sector is expected to outperform its Asia-Pacific neighbours as borders reopen and travel recovers,” she said.

“Hotel revenue per available room is also expected to climb with the return of large-scale MICE (meetings, incentives, conventions and exhibitions) events… Additionally, while demand is picking up at a significant pace, supply is expected to be modest, with possibly an addition of another 7,000 new hotel rooms from now till 2026.”

https://www.businesstimes.com.sg/pro...-private-talks