Hotel Marrison @ Desker, 25-room boutique property located in Little India has been put up for sale via an EOI (expression of interest).
This was informed by Knight Frank the marketing agents for the sale and they also revealed the guide price S$28-30 million.
There are six adjacent 2-storey shophouses which have an attic included in the property. There are several retail stores and also a small eatery in the ground floor. With dual frontage the hotel opens into Desker Road and Kapor Road.
It enjoys a freehold status and covers total 6,664 sq ft land area and the existing structure has 12,270 sq ft floor area.
The property is advantageously located and enjoys great popularity among tourists as well as locals. There are several Indian restaurants, budget hotels and cyber cafes in the vicinity.
City Square Mall, Mustafa Centre the 24/7 mega departmental store are the integrated development Tekka Place is nearby.
Also close to this property are New World Centre and Centrium Square.
Knight Frank Singapore’s Executive Director in charge for Investment & Capital Market Mary Sai said that the hotel would attract investors who wish to generate recurring income as well as people in the hospitality industry who wish to start their operations at this location.
She added that running smaller hotels can always be advantageous as they have the ability to offer highly affordable rates apart from personalized services which many customers look for.
The average occupancy rate for this property has been about 85% over the last two years.
According to Ms Sai there has been renewed interest in commercial properties ever since the cooling measures came into effect in July 2018 which dented the residential property market.
She said that her agency has seen increased enquiries for boutique hotels and shophouses in the last few months.
She is enthusiastic about the prospects of hotel business as the tourist inflow has been growing over the last few years and there hasn’t been much increase in the number of new rooms being added.
There is a positive outlook for the business in the coming years.
In related development Stevens Road’s Oxley Mercure and Novotel hotels which is owned by Oxley Holdings was sold recently.
Oxley Holdings recently stated that it has received an offer for the purchase of its hotel from Tahir, Indonesia’s business magnate.
Hotel Marrison’s Expression of Interest closes on 26 February, 2019 at 3:00 PM