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The seven-storey 106-key hotel is up for sale by public tender with a guide price of $2,060 per sq ft based on the current gross floor area of 47,990 sq ft. Image: CBRE
Fortuna Hotel, a 106-key hotel located at 2 Owen Road, has been put up for sale by public tender with a guide price of $98.8 million or $932,000 per key or $2,060 per sq ft on the current gross floor area, revealed exclusive marketing agent CBRE.
Situated at a junction along Owen Road and Serangoon Road, next to Farrer Park MRT station, the freehold hotel is nestled on an 8,332 sq ft site that is zoned for “Hotel” use under the 2019 Master Plan with a gross plot ratio of 3.0.
Fortuna Hotel spans seven storeys with an estimated gross floor area of 47,990 sq ft. It comprises a basement carpark as well as four retail shops and one restaurant on the first storey. The sizes of its 106 rooms range between 17 sq m and 49 sq m.
CBRE noted that the property may be acquired by foreigners with no Additional Buyer’s Stamp Duty or Seller’s Stamp Duty payable.
Clemence Lee, Senior Director of Capital Markets at CBRE, is confident that the hotel will strongly appeal to both local and foreign investors.
“Fortuna Hotel ticks all the boxes that investors and owner-occupiers seek in a mid-sized hotel – a strategic location in a popular tourist destination and commercial hub; a coveted freehold tenure; a palatable investment quantum of circa $100 million with over 100 keys; a MRT station right next door and a short-drive distance from the Changi Airport and the Orchard Road shopping belt,” he said.
The pool of investors includes family offices, real estate funds, high net worth individuals and hotel operators, said CBRE.
“As the property is to be sold with vacant possession, the new owner can immediately carry out asset enhancement initiatives to transform the subject property into an iconic or stylish boutique or select-service hotel. Furthermore, at the current average room size of 26 square meters which is considered spacious for a mid-sized hotel, there is capacity to increase the number of rooms,” said Lee, adding that the owner can also convert the hotel into a serviced apartment or co-living development.
“Given that it will likely take up to two years to define the development’s new positioning and to conduct asset enhancement works, the property’s completion then should coincide with the recovery of tourism in Singapore as the economy gradually moves back to normalcy.”
CBRE added that Fortuna Hotel benefits from the gradual transformation of the area into a commercial and medical hub with the presence of Connexion, which accommodates the Farrer Park Hospital and Farrer Park Medical Centre.
The tender for Fortuna Hotel closes on 10 December.
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