The 301 Serangoon Road Hotel Site Will Be Hotly Contested Due to Attractive Price and Location
After biting dust in a planned sale way back in July 2016, Claremont Hotel Singapore is back in the market.
The freehold hotel close to the Serangoon Road and Owen Road junction that stands eight-storey high is expecting to sell in excess of S$70 million which is substantially lower that the asking price of S$90 million in 2016.
The 90-room budget hotel has a total land area of 4,838 sq ft and 30,591 sq ft gross floor area. The average size of the rooms here is 19 square metre and range between 16 and 36 sq m.
With a plot ratio of 3.0 the site falls in the hotel use zone as per the 2014 Master Plan of the Urban Redevelopment Authority. An Expression of Interest exercise has been launched and it will close at 3:00 PM on the 18th of April.
JLL, the marketing agent for the sale informed that the hotel is being offered on 1-year sale with lease agreement or with a vacant possession status.
Since Claremont Hotel has already been marked for hotel use, foreign nationals would be able to acquire it. Being a commercial property the Seller’s Stamp Duty and Additional Buyer’s Stamp Duty aren’t applicable on this property.
Farrer Park MRT Station is only 100 meters from this hotel while Raffles Place and Orchard Road are only 10-minute drive from this location.
There are several developments in the vicinity which include Connexion an integrated hospitality and healthcare complex, Farrer Park’s Park Hotel and City Square Mall.
Other upcoming developments close to Claremont Hotel Singapore include mixed use development Uptown @ Farrer, Centrium Square which is a 19-storey project with office space and retail stores. lyf Farrer Park Singapore’s 240-unit serviced apartments is also located close by.
Considering the expected price of S$70 million the rate would translate to S$2,300 psf or S$780,000 per room. According to JLL the demand for hotel land and freehold hotels has been increasing since last year and this property should generate good interest.
There have been several tractions in the recent months. These include Waterloo Apartments which was sold for S$131 million @ S$2,172 psf ppr and the Golden Wall Centre which sold for S$276.2 million @ S$2,331 psf ppr.
Senior Director for Singapore capital markets at JLL, Clemence Lee said that freehold hotels that range between S$50m to$100m are easily acquirable and they aren’t launched too often in the market and this would make Claremont Hotel attractive.
He further added that they are expecting interest from developers, hotel operators who would like to venture into a centrally-located hotel in a booming tourist destination and also from family offices and real estate funds.