CEL Development, the wholly-owned subsidiary of Chip Eng Seng Corporation, has submitted the highest bid of $189 million ($789 psf/plot ratio) for the hotel site at Jalan Bukit Merah/Alexandra Road at the close of tender on Dec 1.
CEL’s bid is 2.7% higher than the second highest bid of $184 million ($768 psf/plot ratio) submitted by Forward Land Pte Ltd.
The 99-year leasehold site has a maximum gross floor area of 22,249 sm (239,488 sf). The land parcel is located a short drive away from Orchard Road. The upcoming hotel on the subject site will be the only hotel in the immediate area.
“The tender for the hotel site at Jalan Bukit Merah/Alexandra Road closed today with six bids received, reflecting prevailing buoyant business sentiment for the tourism and hospitality sector,” says Robert McIntosh, Executive Director, CBRE Hotels.
“The strong response to the tender of the subject site reflects a continued strong demand for hotel rooms due to the increasing number of visitors to Singapore. Some 9.84 million tourists came to Singapore in the first nine months of 2011 and STB’s target of 12.00 to 13.00 million tourists for the year should be easily met. Hoteliers are upbeat about business conditions despite the hotel rooms coming on-stream in the near future. In 2012, we expect to see some pressure on average occupancy rates but average room rates are expected to hold firm,” adds McIntosh.
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