Six-storey boutique hotel at Hongkong Street up for sale with S$25m guide price

A SIX storey boutique hotel located at 7 Hongkong Street has been put up for sale via expression of interest with a guide price of S$25 million, sole marketing agent JLL said on Tuesday (Nov 9).

This translates to S$3,500 per square foot (sq ft) on the existing gross floor area of 7,142 sq ft, or around S$926,000 per key. The property has 27 rooms, lift access and 2 mechanised car park lots at the rear.

The hotel, which was completed in 2016, sits on a land plot spanning 1,701 sq ft with a gross plot ratio of 4.2. The site is zoned for hotel use under the Urban Redevelopment Authority's 2019 Master Plan.

Although the land plot is located within the Upper Circular Road Conservation Area, it sits on an envelop control site that is not earmarked for conversation.

JLL Singapore director of capital markets Ong Zhen Hao said the land tenure was also topped-up in 2015, offering an almost fresh 99-year leasehold title.

The hotel is situated between nightlife destinations Clarke Quay and Boat Quay. It is also within walking distance to Raffles Place, City Hall and several tourist attractions including National Gallery Singapore, Asian Civilisations Museum, Fort Canning Park and Chinatown.

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It is also near Clarke Quay MRT station and has connectivity to major expressways such as the Central Expressway (CTE), Marina Coastal Expressway (MCE) and Ayer Rajah Expressway (AYE).

Ong said the sale of 7 Hongkong Street presents a timely opportunity to acquire a hotel asset of palatable investment quantum in an ideal area that is popular amongst both leisure and business travellers.

He added that the incoming owner has the flexibility to engage the current operator, subject to negotiations, or explore rebranding and repositioning strategies.

"The opportunity is suitable for both investors looking for stable recurring income as well as operators who want to bring in their own branding," Ong said.

Foreigners are eligible to purchase the property as the land plot is zoned for hotel use. There is also no additional buyer's stamp duty or seller's stamp duty imposed on the purchase of the property.

The expression of interest exercise for 7 Hongkong Street will close at 3 pm on Dec 21.