Hotel G, lyf Funan floated as possible asset sales

THE improving performance of the Singapore hotel sector aided by the reopening of Singapore’s borders since April is expected to spark investment interest in hospitality assets here. The owners of at least 2 such properties have roped in agents to suss out buying interest.

One is Hong Kong-based Gaw Capital Partners, for its Hotel G Singapore in the Middle Road/Bencoolen Street locale. The price expectation for the freehold property – in the bustling Bugis/Bras Basah area – is seen as being around S$320 million, which works out to about S$1 million per room. The majority of the hotel’s 308 rooms are just 12 square metres each, considered small by industry standards for a midscale hotel, where rooms are typically 17-20 sq m, according to industry players.

The 16-storey property’s gross floor area (GFA) is about 94,600 sq ft; the property’s development potential has been maximised. However, there is potential to add value to the asset by converting some of the car park space on level 4 into additional hotel rooms.