SINGAPORE - Freehold K Hotel in Geylang has been launched for sale at an asking price of $25 million, exclusive marketing agent JLL announced on Thursday (May 2).
Located in the city fringe, K Hotel occupies a land area of 3,725 square feet, and an estimated gross floor area (GFA) of 12,238 sg ft, equivalent to a gross plot ratio of about 3.29.
The eight-storey hotel offers 56 double rooms of 12 square metres each. Based on the Urban Redevelopment Authority's Master Plan 2014, the site is zoned "commercial / institution" with a gross plot ratio of 2.8.
Given the land use zoning, foreigners are eligible to purchase the property, JLL said. It added that there will be no additional buyer's stamp duty or seller's stamp duty on the purchase.
The asking price of $25 million works out to about $2,050 psf on the estimated GFA, or around $450,000 per key.
In a press statement on Thursday, JLL said that interest for freehold hotels and hotel land has been strong over the past year. Recent freehold hotel land transactions include the Golden Wall Centre in Rochor,which sold for $276.2 million ($2,331 psf ppr); and Waterloo Apartments in the Bras Basah-Bugis area, which changed hands at $131 million ($2,172 psf ppr).
Comparable freehold hotel transactions include Wangz Hotel, sold at $46 million, or $1.12 million per key; and Wanderlust Hotel which transacted at $37 million, or $1.28 million per key, JLL said.
K Hotel is a 10-minute walk away from Kallang MRT station, and near Stadium and Mountbatten MRT stations.
With its city fringe location, the hotel is also within a 10-minute drive to the central business district. Key developments in the vicinity include the Sports Hub precinct, and the Kallang Riverside area.
Clemence Lee, senior director of JLL Singapore Capital Markets said: "The elevated buying interests for hotels and hotel sites in Singapore throughout the past year presents an excellent divesting opportunity for the owner of K Hotel to recycle their capital.
"Freehold hotels with a palatable investment quantum of under $50 million in Singapore are tightly held, and very rarely put into the market. We expect strong interest from real estate funds, developers, family offices, and hotel operators who are looking to acquire a freehold hotel located in the city fringe, in an area with good growth potential resulting from the nearby Kallang Riverside rejuvenation plans."
The expression of interest exercise for K Hotel closes at 3pm on June 7.