Boutique hotel in Kg Glam up for sale

COMMERCIAL MARKET

Boutique hotel in Kg Glam up for sale

A boutique hotel, comprising three shophouses along Jalan Klapa, off Victoria Street in the Kampong Glam Conservation Area has been put up for sale with an indicative pricing of $17-18 million.

Located at 9, 11 and 15 Jalan Klapa, the shophouses are on total land area of 4,275 sq ft; the site has a balance lease term of about 92 years. The gross floor area is estimated at 7,911 sq ft.

The site is zoned for commercial use but is permanently approved for hotel use. The shophouses have 15 themed rooms (with an average size of around 215 sq ft), spanning across two storeys and a mezzanine level, a cafe lounge and a small pool.

The indicative pricing translates to a net yield of around 2-3 per cent, based on the current income stream from rooms as well as food and beverage operations.

Operating as Ardennes Hotel, the hotel’s occupancy rate averages around 70 per cent while the average room rate is about $200 per night. An expression of interest exercise is conducted for the property that will close on July 17.

The property is currently owned by a company controlled by a group of private investors who bought the three shophouses four years ago and converted them into a boutique hotel that it currently operates.

The property is being sold with vacant possession.

Meanwhile, those keen on shophouses in the Little India Conservation Area may want to check out three adjoining properties at 2, 4 and 6 Dunlop Street. The 999-year leasehold properties, which are zoned for commercial use, are on 2,475 sq ft of land area and have about 6,000 sq ft gross floor area.

The indicative price is $9.5 million. JLL, the exclusive marketing agent for the sale, is conducting an expression of interest exercise closing on July 10. The property is to be sold on vacant possession.

Source: Business Times – 17 June 2014

 

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