[UPDATE] Andaz Singapore hotel at Duo sold to Hoi Hup for record $475 mil

/ EdgeProp Singapore |
Join our  Telegram  channel and follow our  Facebook  for the latest update.
SINGAPORE (EDGEPROP) - M+S has agreed to sell all the shares of its wholly-owned subsidiary, Ophir-Rochor Hotel, to Hoi Hup Realty for a sale consideration of $475 million or $1.39 million per key. Ophir-Rochor Hotel is the developer and owner of Andaz Singapore, the five-star luxury hotel by Hyatt Hotels at the mixed-use Duo development in Bugis.
Andaz Singapore is a 342-room hotel that features several dining options, a rooftop venue, an observation deck, and meeting facilities. The hotel occupies the top 15 floors of the 20-storey Duo Tower which also houses offices on the lower floors.
The $475 million price will be the highest ever achieved for a standalone hotel deal in Singapore, and is the third most expensive hotel sale in Asia so far this year. “This record sale illustrates the confidence investors have in Singapore and its hotel real estate market,” says Mike Batchelor, CEO Asia of JLL Hotels & Hospitality Group. JLL is the appointed adviser for this transaction.
 Andaz Singapore is a 342-room hotel at the mixed-use Duo development (Picture: M+S)
Andaz Singapore is a 342-room hotel at the mixed-use Duo development (Picture: M+S)
The record price is a testament to the quality of the hotel and reflects its potential for growth alongside the evolution of the Bugis district into a vibrant extension of the CBD, says M+S CEO Kemmy Tan. She adds that the transaction will “allow us to maximise returns to our shareholders, while handing over the reins to a very established and exciting developer in Hoi Hup to take the asset forward”.
Wong Swee Chun, chairman of Hoi Hup Realty, says: “We are attracted to the rarity of this high-quality luxury hotel offering as well as its historic significance [as] one of the landmark projects by M+S. We are especially excited by the strategic location of the hotel, with Andaz Singapore occupying a key node in the transformative Beach Road and Ophir-Rochor Corridor.”
“Andaz is the second major hotel transaction in Singapore within the past one month and follows the sale of Oakwood Premier OUE for $289 million to a joint venture between AMTD Group and Far East Consortium in a sale brokered by JLL,” says Batchelor. Along with other transactions in the pipeline this year, the total transacted hotel volume in Singapore will reach a new peak of $2.5 billion by year-end, he says.
“The Singapore hotel market has traditionally been tightly held; however, we are seeing increased liquidity in the market, driven by the strong weight of global capital seeking opportunities in perceived safe-haven destinations,” says Nihat Ercan, head of investment sales for JLL Hotels & Hospitality Asia. Singapore remains attractive for hotel investment because of its positive trading performance, strong visitor arrivals and new tourism initiatives, he adds.
In July this year, the office and retail areas of Duo were sold to Allianz Real Estate and Gaw Capital Partners for $1.58 billion, which translates to about $2,570 psf on net lettable area. The sale comprised of the 59,873 sq ft Duo Galleria retail mall, and the 557,972 sq ft office component of Duo Tower. This deal was also brokered by JLL.
The sale of the hotel component leaves the 660-unit Duo Residences as the only remaining asset in Duo held by M+S, which also continues to own and manage the various assets at its other mixed-use development, Marina One. The company is a 60:40 joint venture between Khazanah Nasional and Temasek Holdings, and was set up in 2011 to develop the two integrated developments.
For price trends, recent transactions, other project info, check out these projects' research page: Duo Tower, Duo Galleria, DUO Residences, Marina One
Read also:

Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp Facebook
Subscribe to our newsletter

Our Site

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

View More