Buyer keen to acquire Mercure, Novotel hotels for $950m

Property developer Oxley Holdings has accepted a letter of intent for the purchase of its Mercure and Novotel hotels in Stevens Road for $950 million.

It was not announced who the buyer was.

The letter of intent is non-binding and is subject to the parties entering into a definitive sale and purchase agreement, Oxley said in an announcement late yesterday evening.

The consideration was agreed on a "willing buyer-willing seller" basis, taking into account the prevailing market conditions.

Under the terms of the letter of intent, upon receipt of the sum of $9.5 million as a non-refundable deposit, the buyer will be entitled to carry out due diligence during the period until April 15 this year.

The buyer will then pay a sum of $38 million on Feb 28, and a further sum of $47.5 million on the signing date of the definitive sale and purchase agreement or April 15, whichever is earlier.

The two hotels, which opened in 2017, were Oxley's maiden venture into the hospitality business.

Strategically located near the Scotts Road and Orchard Road shopping belts, Novotel Singapore on Stevens has 254 rooms... Mercure Singapore on Stevens has 518 rooms.

Strategically located near the Scotts Road and Orchard Road shopping belts, Novotel Singapore on Stevens has 254 rooms, a 400-seat ballroom, meeting facilities, food and beverage outlets, a fitness centre and a swimming pool. Mercure Singapore on Stevens has 518 rooms.

A version of this article appeared in the print edition of The Straits Times on January 11, 2019, with the headline 'Buyer keen to acquire Mercure, Novotel hotels for $950m'. Print Edition | Subscribe