SINGAPORE - Claremont Hotel, a freehold eight-storey development along Serangoon Road, is back on the market for a second time with the seller eyeing offers in excess of $70 million.
The 90-room budget hotel, near the junction of Owen Road, was previously put up for sale back in July 2016 for $90 million.
The property occupies a land area of 4,838 square feet and an estimated gross floor area of 30,591 sq ft. Room sizes range from 16 to 36 square metres, averaging 19 sq m.
The site is zoned for hotel use with a 3.0 plot ratio (ratio of gross floor area to land area) under the Urban Redevelopment Authority's Master Plan 2014.
The property is being marketed through an expression of interest exercise that closes on April 18 at 3pm.
Marketing agent JLL said the hotel is offered for sale with either a one-year sale and leaseback arrangement or with vacant possession.
As the property sits on land zoned for hotel use, foreigners are eligible to purchase the building. There is also no additional buyer's stamp duty or seller's stamp duty applicable.
The site is a 100-metres walk from Farrer Park MRT Station, and a 10-minute drive away from Orchard Road and Raffles Place.
Key developments nearby include City Square Mall, Park Hotel at Farrer Park and Connexion, an integrated healthcare and hospitality complex. Upcoming developments in the area include Centrium Square, a 19-storey commercial project comprising retail and office space and medical suites, as well as Uptown @ Farrer, a mixed-use development by Low Kheng Huat which will house retail and residential space and a 240-unit serviced residence operated as lyf Farrer Park Singapore.
At $70 million, the price works out to about $2,300 per square foot per plot ratio (psf ppr) or $780,000 per key.
JLL said interest for freehold hotels and hotel land has been strong over the past year. Recent such transactions include Golden Wall Centre, which was sold at $276.2 million ($2,331 psf ppr) and Waterloo Apartments, which went for $131 million ($2,172 psf ppr). Comparable freehold hotel transactions include Wangz Hotel, which was sold at $46 million ($1.12 million per key) and Wanderlust Hotel, at $37 million (S$1.28 million per key).
Clemence Lee, JLL's senior director, Singapore capital markets, said: "Freehold hotels with a palatable investment quantum of $50 to $100 million in Singapore are tightly held and seldom put into the market. We expect strong interest from real estate funds, developers, family offices, and hotel operators who are looking to acquire a centrally-located freehold hotel in a popular tourist destination that is undergoing rejuvenation and gentrification."