Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm has been exclusively appointed for the sale of the Excelsior Hotel and Shopping Complex by public tender as owners representing over 80% have agreed to collectively put the property to market at a reserve price of $458 million.
The property is in the planning district of City Hall, where it is surrounded by key national monuments such as The Capitol, St Andrew’s Cathedral, The National Gallery, The Supreme Court and many more. A designated ‘Track Hotel’ due to its location within the Formula 1 Night Race Circuit, it is nestled in a locality with a wide array of amenities, shopping, entertainment & nightlife activities, 5 Coleman will indeed be a trophy hotel asset reserved for the discerning investor.
Excelsior Hotel & Shopping Centre comprises a 5-level podium shopping centre and a tower block rising to 21 storeys accommodating 284 keys with rooms ranging from 25 sqm to suites up to 75 sqm. The site area is 1,932.2 sqm and the building has a verified GFA of 21,111.92 sqm, or an as-built plot ratio of 10.93. The zoning in the Master Plan is ‘Hotel’ and its tenure is 99 years w.e.f. 17 August 1979.
According to Ms Christina Sim, Senior Director of Capital Markets at Cushman & Wakefield, ‘Hotel assets which were one of the hardest hit during the pandemic years 2020 and 2021 is now recovering with a vengeance. The fundamentals for hospitality assets are solid and Singapore’s hospitality sector is expected outperform its APAC neighbors as borders reopen and travel recovers. China’s reopening will
be an added boost for hotels as Chinese travelers for business and leisure are one of Singapore’s top tourism sources.
Hotel Revenue per available room (RevPAR) is also expected to climb with the return of large-scale MICE events. RevPars are typically dynamic and can be adjusted to take in demand and more importantly, manage inflation. Additionally, while demand is picking up at a significant pace, supply is expected to be modest, with possibly an addition of another 7,000 new hotel rooms from now till 2026.’
The tender for No. 5 Coleman Street will close on 18 April 2023 (Tuesday), 3.00pm.
