Sold Hotel – PARKROYAL, Singapore
JLL advises on largest ever single-asset Singapore hotel transaction – Pan Pacific Hotels Group enters into an agreement to sell the PARKROYAL on Kitchener Road for a total consideration of US$388 million.
JLL today announced it advised Pan Pacific Hotels Group, who has entered into an agreement for the sale of the PARKROYAL on Kitchener Road to Midtown Properties Pte. Ltd., part of Worldwide Hotels Group.
The purchase consideration of S$525 million ($388 million) represents the largest ever single-asset hotel transaction in Singapore and the second largest in Asia Pacific in 2023.
The 542-key freehold hotel is situated in the heart of the historic Little India district in close proximity to City Square Mall, Mustafa Centre and Farrer Park MRT station. Adding to the asset’s attractiveness, the PARKROYAL on Kitchener Road completed a major refurbishment in 2020, adding more state-of-the art fit-outs to meet maturing guest experience demands.
“As the largest single-asset hotel transaction ever recorded in Singapore and the second largest in the Asia Pacific region in 2023, this deal underscores the enduring appeal of Singapore as a safe haven investment destination amidst global macroeconomic uncertainty and its status of one of the most attractive long-term hotel markets globally,” says Nihat Ercan, Chief Executive Officer, Asia Pacific, JLL Hotels & Hospitality Group.
“JLL is delighted to have advised on this landmark transaction, which was secured through a comprehensive marketing campaign targeting active sources of capital globally and regionally. Furthermore, we see this sale as reinforcing our confidence in strong buyer appetite regionally for quality hotel assets and a willingness by investors to deploy capital into key markets and strategic assets.“
The PARKROYAL on Kitchener Road transaction is also the first major agent-brokered hotel transaction in Singapore post-pandemic and it follows JLL’s successful sale of the SHREIT portfolio in Indonesia and Vietnam, which the firm believes is indicative of stronger investment activity to materialise across the region during the second half of 2023. This particular transaction holds significant importance for the market, following the successful sales of the Andaz Singapore and the Oakwood Premier OUE since 2019, both of which were also brokered by JLL.
“Investors responded very favourably to the marketing campaign for the PARKROYAL on Kitchener Road, due to the hotel’s coveted freehold land status and exciting potential for rebranding and redevelopment. We are proud to have advised on this major sale which brought together our strategic advisory and on-the-ground transactional expertise to ensure a seamless and efficient sale process for our client,” says Julien Naouri, Senior Vice President, Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group.