The Sandpiper Hotel at 63 Dunlop Street has been put on the market at a guide price of $33 million. The price for the 31-key hotel property works out to $1.06 million per key.

The sale of the freehold hotel will be conducted by CBRE, as the sole marketing agent, via an expression of interest (EOI) exercise.

The three-storey hotel is in the Little India Conservation Area and features a 38m dual-road frontage towards Dunlop Street and Perak Street. Four MRT stations can be found within walking distance of the Sandpiper Hotel – Rocher Station, Jalan Besar Station, Bugis Interchange, and Little India Interchange. Together, they provide connectivity to the Downtown, East-West and North-East lines.

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The property sits on a 2,556 sq ft commercial site which has permanent hotel approval, according to CBRE. It has a built-up area of 8,538 sq ft, housing 31 guest rooms and a ground floor restaurant for up to 50 diners.

“Boutique hotels with a palatable investment quantum of less than S$50 million are usually tightly held and these assets are seldom available for sale. Owners of such assets often see them as a means for long term wealth preservation and capital appreciation. Sandpiper Hotel is therefore a rare acquisition opportunity,” says Michael Tay, CBRE head of capital markets, Singapore.

He adds that the site’s Hotel use approval will be an opportunity for astute investors looking to acquire a freehold boutique hotel that is strategically placed in a prime, city-fringe location.

The new owner could explore value enhancement options to unlock future capital values for the asset, says Tay, adding that, subject to approvals, there is potential to build-up the roof terrace on the third storey into additional guest rooms as the asset is currently sitting on an envelope control site.

Tay expects the property to attract interest from family offices, boutique real estate funds, local companies, owner-occupiers, and high-net-worth individuals.

The EOI exercise for the sale of the Sandpiper hotel will close on June 19.