OUE and OUE Commercial Real Estate Investment Trust (C-Reit) have announced a S$22 million asset enhancement initiative (AEI) for Crowne Plaza Changi Airport.

In a bourse filing on Wednesday (Aug 2), OUE and OUE C-Reit said that the enhancement will add 12 guest rooms, 10 premier pool rooms and two suites, bringing room inventory to 575 rooms.

The all-day dining restaurant will also be revamped as part of the AEI, relocating it to the ground floor. A new Italian restaurant, Allora, will replace the current eatery, Azur. The space where the restaurant was will be turned into a multi-function room for meetings, social events and weddings.

“The strategic transformation of underutilised spaces into additional guest rooms and meeting facilities will further drive sustainable returns,” said Brian Riady, deputy chief executive officer, OUE.

The AEI will also see the revamping of the current bar space into a club lounge, while the hotel gym will be refreshed with new equipment.

The manager said that it expects the AEI to be distribution per unit accretive, estimating capital expenditure of about S$14 million. The initiative is expected to generate a return on investment of about 10 per cent.

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Existing loan facilities will be drawn down to fund the AEI, which is expected to be completed by end-2023. “This AEI is timed to capture the anticipated influx of leisure and business travellers in 2024 and beyond as the recovery prospects of Singapore’s hospitality sector remain positive,” said Han Khim Siew, chief executive of the manager of OUE C-Reit.

Shares of OUE closed 0.9 per cent or S$0.01 lower at S$1.06, while units of OUE C-Reit fell 4.8 per cent or S$0.015 to S$0.295 on Wednesday.