A 184-room hotel at 12 Lorong 12 Geylang is up for sale via an expression of interest (EOI) exercise with a guide price of $120 million. The eight-storey property sits on a 12,993 sq ft, freehold site and has a gross floor area (GFA) of about 43,500 sq ft. The rooms, which have an average size of 175 sq ft, each have en suite bathrooms and windows. The hotel also has a private parking facility.

The guide price for the hotel translates to approximately $2,758 psf based on the hotel’s GFA, or roughly $650,000 a key.

The size of the hotel makes it a unique offering in the area, notes Michael Tay, head of capital markets, Singapore, at CBRE, which is marketing the property. “There are fewer than five hotels with more than 150 rooms in Geylang and this asset class is tightly held and rarely available,” he says.

Read also: Freehold hotel in Chiang Mai on the market for $24.3 mil

Tay adds that demand for hospitality assets has continued growing in the past year. Notable recent transactions include the sale of Hotel G in Bugis to CapitaLand Investment’s CapitaLand Wellness Fund and The Ascott for $235 million in January. Earlier this month, serviced residence Citadines Mount Sophia on Wilkie Road was sold to a joint venture between Weave Living and Blackrock for $148 million.

Joshua Giam, associate director of capital markets, Singapore, at CBRE, highlights that the new owner could undertake value-enhancement initiatives to maximise the property’s rental returns and capital value, subject to approval from relevant authorities. This includes potentially converting the indoor carpark and back alley into a co-working space or outdoor gym and swimming pool, and refurbishing the hotel’s façade and common areas.

The EOI exercise for 12 Lorong 12 Geylang will close on March 27 at 3pm.