In the latest batched tender closing on Jan 15, bidding for the Club St hotel plot was fairly aggressive with eight bids received. It was the first hotel site offered for sale in the GLS programme in a decade – not since the hotel site at Bukit Chermin Road in 2H2008, says Tricia Song, Colliers Intl head of research for Singapore. The top bid submitted was $562.2 million and translated to $2,148.5 psf ppr. The group could potentially build an 800-room hotel on the site, thereby making more efficient use of the plot, she adds. The breakeven cost is estimated to be $800,000 per key, which could generate a decent yield for the developer. The site allows for the development to include 4,800 sqm of commercial space to supplement hotel income. The wide price gap of 12.4% between the bid from Worldwide Hotel Group and the second highest bidder – UOL Group’s subsidiary United Venture Investments (No. 1) – reflects the confidence of the former in the location amid a general return of interest in the hotel sector, adds Song.... Continue Reading