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OUE Hospitality Trust (OUE H-Trust) has agreed to buy Crowne Plaza Changi Airport (CPCA) and Crowne Plaza Changi Airport Extension (CPEX) from OUE Ltd for a total of S$495 million.
Located near Changi Airport’s passenger terminals, the S$290 million airport hotel has 320 rooms and has been operating since May 2008, while CPEX, which is currently under construction, is an extension that will add 243 rooms–increasing the total to 563 rooms. The latter will be bought on a turnkey basis for S $205 million.
“The acquisition of Crowne Plaza Changi Airport and its extension presents a great opportunity for OUE H-Trust to add another quality asset to its portfolio. Crowne Plaza Changi Airport was voted one of the World’s Best Airport Hotels at the Skytrax World Airport Awards 2014,” said Christopher Williams, Chairman of OUE Hospitality REIT Management, the REIT’s overseer.
In a press release, the group said the hotel has consistently posted high occupancy rates of more than 85 percent, while revenue per available room (RevPAR) climbed to $241 during the first three quarters of 2014 compared to S$235 for the whole of 2013 and S$231 in 2012.
CPCA’s acquisition is expected to be completed first as the business is already up and running, while that of CPEX is targeted by end-2015 after it has received its temporary occupation permit (TOP). Subsequently, both properties will be leased to OUE Airport Hotel (OUEAH).
“With this acquisition, OUE HTrust’s asset portfolio will increase from S$1.76 billion to approximately S$2.25 billion,” added Chong Kee Hiong, Chief Executive Officer of the REIT Manager.
Image: Crowne Plaza Changi Airport (Source: IHG)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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