A prominent site for hotel development at the junction of New Bridge and Cantonment roads has been put on the reserve list of the Government Land Sale

A prominent site for hotel development at the junction of New Bridge and Cantonment roads has been put on the reserve list of the Government Land Sales programme.

It is the first of three new hotel sites to be released by the Urban Redevelopment Authority for the first half of 2007.

The site is 0.45 ha, has a plot ratio of 3.5, and maximum gross floor area of 15,687 square metres.

CBRE Research executive director Li Hiaw Ho reckons a 315-room hotel can be built on it.

Highlighting the proximity to Outram MRT station, and niche hotels like New Majestic Hotel and Hotel 1929, Mr Li believes potential hoteliers will likely develop a mid-tier outlet catering to business travellers who want a reasonably-priced hotel on the fringe of the CBD and tourists who want to be close to Chinatown.

In view of this, and the recent upswing in the hospitality sector, Mr Li believes the site could fetch between $450 and $480 per square feet per plot ratio or between $21.7 million and $23.2 million.

Noting the increasing interest from foreign hoteliers, he pointed out that LaSalle Investment Management and the Park Hotel group have been actively acquiring sites here.

So far this year, LaSalle has bought the Swissotel Merchant Court and a 50 per cent stake in LC Development’s Changi Airport hotel project at Terminal 3.

Source: The Business Times, 20 April 2007