Freehold hotel at Geylang for sale at $120 million via Expression of Interest

Singapore, 20 February 2024 – CBRE, as the exclusive marketing agent, is offering a rare opportunity to acquire a 184-room freehold hotel located at 12 Lorong 12 Geylang. The sale will be conducted through an Expression of Interest exercise, which closes on Wednesday, 27 March 2024, at 3pm.

Boasting a wide dual street frontage of approximately 80 metres, the 8-storey hotel sits on a site of approximately 12,993 sq ft. The Property has a Gross Floor Area (GFA) of approximately 43,500 sq ft and features a spacious lobby, private parking facility, and a total of 184 hotel rooms with an average size of approximately 175 sq ft. All the rooms have ensuite bathrooms and come with large windows that allow for plenty of sunlight and ventilation for guests.

12 Lorong 12 Geylang presents an opportunity for investors and owner-occupiers to acquire a freehold hotel in the Geylang planning area. The area has gone through gentrification over the past few years and has been transformed into a trendy F&B and lifestyle destination with established dining establishments. Since the pandemic, the area has welcomed a range of new F&B concepts such as cafes and bars, co-working and co-living operators, and other lifestyle businesses such as pet boarding centres and other retail offerings.

At the guide price at S$120 million, it translates to approximately S$2,758 per square foot based on the Gross Floor Area and approximately $650,000 a key. Foreigners and corporates are eligible to purchase and there will not be any Additional Buyer’s Stamp Duty and Seller’s Stamp Duty imposed.



Mr Michael Tay (郑兆能), Head of Capital Markets, Singapore at CBRE, says, “There are only fewer than five hotels that are bigger than 150 rooms in Geylang and this asset class is tightly held and are rarely available. This opportunity will appeal to a wide range of buyers such as family offices, high-net-worth individuals, corporates, and boutique real estate funds. In the past 12 months, we have observed a growing demand for such hospitality assets with notable transactions including Hotel G for $235 million in January 2024 and Citadines Mount Sophia for $148 million in February 2024.”

Mr Tay also expects demand to remain strong as Singapore is well-positioned to outperform both in the immediate and long term as the rental market remains strong and the recovery of Singapore’s tourism sector is expected to continue. The number of international events such as concerts and conventions have led to an increase in the number of leisure and business travelers into Singapore. In the longer term, hotel owners and operators are projecting an exponential increase in traveler count with the
completion of Changi Airport Terminal 5 in 2030. He believes Singapore’s conducive investment environment and its concentration of high growth sectors will allow it to capitalize on increasing investment flow.

On the property, Mr Joshua Giam (严耀祥), Associate Director of Capital Markets, Singapore at CBRE adds, “Subject to approval from relevant authorities, there are various value-enhancement options that may be viable. There is potential to convert the underutilized areas such as the indoor carpark and back alley into higher-value uses such as a café-cum-co-working space and an outdoor gym and swimming pool. The incoming buyer can also boost room rates through a refurbishment of the asset’s façade, lobby area, common areas, and rooms. The asset can also be repositioned into a co-living hotel to cater to the growing demand of city fringe living from both expatriates and locals. These initiatives will allow the new owner to maximize the rental returns and capital value of the Property.”

12 Lorong 12 Geylang enjoys excellent accessibility and is well-connected to other parts of Singapore via public and private transportation. It is strategically flanked between two key commercial nodes – the Central Business District (CBD) and Paya Lebar sub-regional hub and has easy access to all parts of Singapore and a short distance from landmarks such as the National Stadium (3-minute drive), Suntec City & Convention Centre (5-minute drive), and Paya Lebar Quarter (6-minute drive). By car, the property is conveniently connected to other parts of Singapore via expressways such as the Kallang Paya Lebar Expressway (KPE) and Nicoll Highway.