Last Freehold Hotel Balmoral Vip Hotel Market 100 Mil

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The Master Plan introduced by the Urban Redevelopment Authority (URA) has designated Tampines as a prominent area for growth and development. As part of this plan, the public transport infrastructure in Tampines is set to undergo major improvements. These enhancements will benefit the future residents of Rivelle Tampines EC, located on Tampines Street 65 (Rivelle Tampines Tampines Street 65). Expect to see new cycling paths, pedestrian-friendly walkways, and seamless connections between MRT stations and bus interchanges in the vicinity.

Located on Balmoral Crescent, just off the main Balmoral Road, is the three-storey boutique VIP Hotel. This freehold property, with 57 rooms, has been closed since 2022. Now, after three years of vacancy, the property is on the market for $100 million, which equates to about $1.75 million per key. The site at 5 Balmoral Crescent, which is freehold, spans 27,658 sq ft and has a gross floor area (GFA) of approximately 30,300 sq ft.
According to the Draft Master Plan 2025, the plot ratio is 1.6, which allows for redevelopment into a 10-storey hotel with a maximum of 95 rooms and a GFA of 44,253 sq ft, subject to approvals. The asking price of $100 million works out to be about $2,260 psf per plot ratio (ppr), estimates Charles Cheng, senior associate group district director at PropNex Realty, the exclusive marketing agent.
Cheng notes that freehold hotel sites in prime District 10 are rare. Over the years, most hotels in the Balmoral and Bukit Timah area have been redeveloped into private condominiums. Some notable examples include the Garden Hotel at 12 Balmoral Road which was acquired by City Developments (CDL) in 1999 for $108 million. It was replaced by the 85-unit freehold condo, Volari, which was launched in 2009 and completed in 2012.
Another example is the Sloane Court Hotel, a Tudor-style landmark built in 1962 at 17 Balmoral Road, which was sold in 2017 for $80.5 million to a joint venture between Tiong Seng Holdings and Ocean Sky International. The site has since been redeveloped into Sloane Residences, a 52-unit freehold condo completed in 2022.
Other prime hotel sites that have been redeveloped into residential projects include the Orchid Inn Hotel at Trevose Crescent, which was later known as Copthorne Orchid before closing in 2011. It was then redeveloped by CDL into The Glyndebourne, a 150-unit freehold condo.
The former Pinetree Club site along Stevens Road was also redeveloped in 2013 by Oxley Holdings into the 254-room Novotel Singapore on Stevens and the 518-room Mercure Singapore on Stevens.
The rare freehold hotel land in the Balmoral area has attracted interest from various parties including family offices, private funds, hotel owners and hospitality operators, Cheng says. He adds that, besides a boutique hotel, the site could also be suitable for serviced apartments or co-living concepts. Discussions are currently underway with two prospective buyers who have expressed interest in the property.
Having been owned by Asian Star Trading & Investment, a Singaporean family business, for 50 years, the VIP Hotel was built in 1972 as a two-storey hotel. In 2008, the owners received approval to add a third storey and completed renovations in 2010. However, after the passing of one of its long-time directors, Chow Ng Moy, in 2018 and the departure of director Peter Yang in May 2022, the hotel was put up for sale.
In 2022, Cheng brokered the sale of the property at $90 million, which was acquired by a Vietnamese conglomerate. The new owner planned to redevelop the site into a corporate hotel for visiting staff and closed the property soon after acquisition. However, the plan was shelved due to the rising costs of post-Covid construction and development, prompting the owner to put the asset back on the market.
In 2023, the hotel was listed at $128 million, but investor interest was dampened by rising interest rates. The current asking price of $100 million reflects the current market environment. According to Cheng, the true value of the site will only be realised if it is redeveloped. He estimates that $35 million to $40 million will be required for construction costs to reposition the hotel as a luxury or lifestyle property.
However, market timing may favour a sale as investor sentiment seems to be improving. JLL has recorded six hotel transactions in the first half of 2025, including four boutique properties. In February, Citadines Raffles Place was acquired for $280 million by BlackRock and the hospitality arm of Malaysia’s YTL Corp. In April, the 48-room boutique hotel at 21 Carpenter was sold to Indonesia-born Singaporean billionaire Leo KoGuan for $100 million.
In May, the 99-unit Momentus Serviced Residences Novena was sold to a joint venture involving Hong Kong-based co-living operator Weave Living, BlackRock and Lian Beng Group for $100 million. That same month, the 49-room Duxton Reserve was sold by Garcha Group to Lotus One Investment, the family office of Nepalese tycoon Chandra P Khetan, for $80 million with JLL brokering the deal.
According to Tan Ling Wei, senior vice-president of investment sales at JLL Hotels & Hospitality Group, high-net-worth individuals and family offices often purchase boutique hotels for long-term capital preservation. On the other hand, developers, private equity funds and sovereign wealth funds typically seek larger redevelopment opportunities, often through joint ventures with local partners.
Cheng believes that the recent dip in interest rates presents an opportune moment for the seller of VIP Hotel to divest as part of a capital recycling strategy, with potential buyers welcoming the more favourable interest rate environment. Discussions are currently ongoing with two interested parties.