Hotel site at Club Street launched for tender by URA

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The Urban Redevelopment Authority (URA) today launched a hotel site at Club Street for sale by public tender under the Confirmed List of the second half 2018 (2H2018) Government Land Sales (GLS) Programme. This site can potentially yield about 390 hotel rooms.

CHOICE SITE FOR QUALITY HOTEL DEVELOPMENT

Located prominently along the junction of Cross Street and Club Street, the land parcel of the hotel site is in close proximity to the China Square area and Central Business District – an area envisioned to be an exciting mixed-use cluster with office, hotel, retail and residential uses.

The future hotel development will also build on the existing cluster of hotels such as Parkroyal on Pickering, The Scarlet Hotel and upcoming hotel developments at Far East Square and China Square.

NEAR MAJOR ATTRACTIONS AND AMENITIES

The hotel site is also located within the bustling Chinatown Historic District – an area rich in heritage and culture and lined with traditional shophouses with diverse retail and food & beverage offerings.

It is also close to nearby tourist attractions such as the Sri Mariamman Temple, Buddha Tooth Relic Temple & Museum and Thian Hock Keng temple.

EXCELLENT CONNECTIVITY

The future hotel development will be directly connected to Chinatown MRT interchange station (North East Line and Downtown Line) and Telok Ayer MRT station (Downtown Line). It is also within walking distance to the future Maxwell MRT station (Thomson-East Coast Line), enjoying convenient and seamless island wide access via the rail network.

hotel site
Image credit: URA
Location Club Street
Site Area / Horizontal Cross-Sectional Area Plot 1: 5,121.4 m2 (Land Parcel) (1)
Plot 2: 4,705.9 m2 (Subterranean Stratum)
Plot 3: 223.7 m2 (Subterranean Stratum) (2)
Plot 4: 31.1 m2 (Subterranean Stratum) (2)
Lease Period 99 years
Allowable Development Hotel
Maximum Gross Floor Area 24,310 m2
Maximum Building Height Low-Rise Zone
Maximum 4-storeyHigh-Rise Zone
Maximum 75 m AMSL (3)
Project Completion Period (4) 60 months
(1) Site area subject to cadastral survey.
(2) Estimated horizontal cross-sectional area and subject to cadastral survey
(3)  Above Mean Sea Level.
(4) Computed from the date of acceptance of the tender by the Authority up to date of issue of Temporary Occupation Permit for the whole of the proposed development.

The tender for this hotel site will close at 12 noon on 15 January 2019. The tender closing for this hotel site will be batched with two other residential sites at Kampong Java Road and Tampines Avenue 10 which will be launched for sale in October 2018 under the 2H2018 GLS Programme.

The URA tender of the hotel site comes at a time when the economy has improved, healthy tourist arrivals have been recorded and the Trump-Kim summit has been successfully hosted.

Recognising this, the Government released the hotel site for  development (390 rooms) in its Industrial Government Land Sales (IGLS) programme in the 2nd half 2018 confirmed list. The last time a site with a hotel component was included in the confirmed list of the IGLS programme was 7 years ago.

Commercial property landlords may be recalibrating rents and occupancy levels

Mr Govinda Singh, executive director of valuation and advisory for Asia at Colliers International in speaking to the Straits Times said: “Given the bright tourism prospects ahead, we believe the hoteliers would be very keen on the hotel offerings on both the confirmed list and reserve list. The Club Street plot sits within a high-demand area in Chinatown for both corporate and leisure, and plugs well into the rejuvenation of the Tanjong Pagar district nearby. The Marina View white site also presents good opportunities, being in the prime downtown, which has been earmarked as an exciting waterfront destination in the future.”

Freehold boutique hotel at corner of Outram Road and Tiong Bahru Road sold for $46 million

In June, besides the hotel site at Club Street, the Government released another hotel site at Marina View in its latest Government Land Sales programme. URA said the sites will allow developers to provide additional hotel rooms to meet an expected growth in demand. In total, the two hotel sites are expected to 930 rooms.

In 2017, Singapore registered a growth of 6.2% in International Visitor Arrivals to welcome 17.4 million visitors. With the favourable global economic outlook, the Singapore Tourism Board is optimistic about tourism prospects for Singapore in the next few years. The Government iin releasing two new sites that can supply new hotel rooms at Club Street and Marina View via the 2H2018 GLS Programme, said that these sites will allow developers to provide additional hotel rooms to meet the expected growth in demand.

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