A 25-room boutique hotel within the Little India area has been launched for sale by expression of interest (EOI) with a guide price of around $28 million to $30 million, revealed Knight Frank.
Featuring dual frontages along Desker Road and Kampung Kapor Road, the property comprises six adjoining units of two-storey shophouses with attic. Aside from the hotel, the property also houses various retail shops and an eating house on the ground floor.
It sits on a 6,664 sq ft site and has a total gross floor area of about 12,270 sq ft.
Just a short distance away from the Jalan Besar and Farrer Park MRT stations, the freehold property is also close to various developments such as Mustafa Centre, the upcoming Tekka Place integrated development, City Square Mall, New World Centre and Centrium Square.
“As the hotel is located on a corner plot with high visibility, it will appeal to investors looking for recurring income, as well as hotel owners for their own operation,” said Mary Sai, executive director of investment and capital markets at Knight Frank Singapore.
She believes that smaller hotels can withstand competition from larger hotels as they can look to offer more personalised services at affordable rates.
In fact, the subject hotel, which is operating under the name Hotel Marrison @ Desker, has enjoyed an average occupancy rate of more than 85 percent over the past two years.
Interest for commercial properties such as boutique hotels and shophouses has increased following the government’s surprise cooling measures in July.
“With a healthy growth in visitor numbers, marginal increase in hotel room supply and the outlook for hospitality sector largely positive for the year ahead, we have observed that there have been several hospitality sale transactions recently, such as Wanderlust Hotel at Little India, Ascott Raffles Place and the recent announcement on the impending sale of Oxley Holdings’ Mercure & Novotel hotels,” she added.
The EOI exercise for the hotel closes on 26 February.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org