Foreign investors eye hotel sites

Foreign investors eye hotel sites

MORE foreign investors are likely to be in the running for hotel sites here, including one at Tanjong Pagar Rd/Gopeng St launched yesterday by the Urban Redevelopment Authority.

The 2,373 sq m site, which has a maximum gross floor area of 19,933 sq m, is on the reserve list of the Government Land Sales programme. Two weeks ago it drew a committed bid of $79.4 million from an unnamed developer, which means it is now up for public tender.

The highest bid could very well come from a foreign investor or property fund, says David Ling, managing director of hospitality consultancy HVS International. Nine out of 10 funds he has come into contact with are interested in Singapore's hotel sector, he says. 'The government is taking real action to promote tourism' - such as the integrated resorts and a possible F1 motor race. 'Apart from China and India, where else would investors go?' he adds.

Top of the list of foreign funds would be LaSalle Investment Management, which 'has already raised capital', Mr Ling says.

LaSalle recently acquired two hotels here, as well as a GLS hotel site in Bencoolen Street for $73 million in December 2006.

Also in the running could be Middle Eastern investors including Kingdom Hotel Investments, he says. 'Most funds also feel the (hotel property) cycle has at least another three to four years to go.'


The future developer of the Tanjong Pagar Rd/Gopeng St site is likely to build a mid-tier or mid/upper-tier hotel.

Mr Ling reckons a 400-500 room mid-tier hotel or a 250-300 room four-star hotel could go up on the site. Nearby hotels like The Amara and M Hotel, which serve the business community in the CBD, are 'doing relatively well', he says.