The Urban Redevelopment Authority, URA will launch a tender for a hotel site at the junction of Clemenceau Avenue and Havelock Road in two weeks time.
It has accepted an application from a developer for the hotel site, which is on the Reserve List, for public tender.
The developer has committed to bid at least $40.8 million for the land parcel.
The URA said the 99-year leasehold site can generate a maximum gross floor area of 11,555 square metres.
The site spans 0.55 hectares.
A hotel of not more than seven storeys can be built on the plot.
Ms Tay Huey Ying, director for research and advisory of Colliers International, said the site is likely to be developed into a hotel catering largely to business travellers.
The site could attract four to eight bids ranging from $47 million to $53 million, said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic.
These are likely to come from a mix of foreign and local developers and hotel owners, with possible joint ventures.
With the nearby Swissotel Merchant Court and competitors in the surrounding area, he said the hotel needs to carve its own niche.
“This new hotel will be smaller than Merchant Court Swissotel and it is located at a busy junction, so it cannot compete head-on with the bigger hotels in the area,” he said.
Source : Today – 15 Jun 2010
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