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Located within the Kreta Ayer conservation area, the property is near the Chinatown MRT station and a 20-minutes’ drive to the Changi International Airport.
The Porcelain Hotel, a 138-room boutique hotel in Chinatown, has been put up for sale via expression of interest (EOI) carrying a guide price of $115 million, revealed joint marketing agents CBRE and Edmund Tie.
This works out to $830,000 per room or $2,950 per sq ft on the 38,686 gross floor area.
Housed within a row of adjoining conservation shophouses at 46 to 50 Mosque Street, the 99-year hotel spans four storeys, with majority of its room sizes ranging between 86 sq ft and 172 sq ft. It also features a selection of larger units measuring up to 452 sq ft.
The Porcelain Hotel occupies a 10,143 sq ft site that is zoned “Commercial” under the 2019 Master Plan. This means foreigners can acquire the property with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) payable.
The marketing agents noted that the purchaser can opt to buy the property with vacant possession or via a sale and leaseback arrangement.
“With a leaseback arrangement in place, the incoming buyer will have some time to plan how they would like to carry out asset enhancement initiatives to refurbish and reposition the property. The new owner will have the flexibility to either self-manage the hotel or engage an independent operator,” said CBRE Senior Director of Capital Markets Clemence Lee.
“To capitalise on the crowd, the potential buyer can explore repositioning and converting the ground floor into F&B use and curating an exciting tenant mix featuring restaurants, wine bars, cafes and bistros.”
Lee expects the hotel to receive robust interest from developers, real estate funds, family offices as well as hotel/co-living operators.
“The Porcelain Hotel presents a rare opportunity for one to own a row of shophouses with hotel approval in Chinatown, where new application for hotel use in this area will generally not be supported,” said Swee Shou Fern, Executive Director of Investment Advisory at Edmund Tie.
She noted that the mid- to long-term outlook for the hospitality property market is favourable considering the low hotel supply pipeline in the next three to four years.
Located within the Kreta Ayer conservation area, the property is near the Chinatown MRT station and a 20-minutes’ drive to the Changi International Airport.
The EOI exercise for The Porcelain Hotel closes on 27 March.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg