A five-year-old policy that allows property developers to convert residential land sites in the Orchard and Bras Basah areas for hotel use will be discontinued with immediate effect.

The Urban Redevelopment Authority (URA) said on Wednesday that the policy, introduced in 2008 to encourage more hotel developments in Singapore's central areas, has achieved its aims.

The land use planning agency has reviewed the policy with the Singapore Tourism Board and "assessed that it has fulfilled its objective of helping to boost the supply of hotel rooms within the central area", it said.

"This policy will therefore be discontinued, as there is no longer a specific need to encourage the conversion of residential sites within Orchard Road and Bras Basah/Bugis to hotel use."