A 184-room freehold hotel at 12 Lorong 12 Geylang is back on the market at an 8% lower guide price of $110 million, two years after it was put on sale.
That is the address of YaJu Hotel, a two-star hotel that is “within a 20-minute walk from Aljunied and Kallang MRT Stations”, according to its website. The hotel is also a three-minute drive from the National Stadium, which is located 2km away.
The eight-storey hotel occupies a prominent freehold site of approximately 15,731 sq ft and features a wide dual-street frontage of approximately 80 metres, says exclusive marketing agent CBRE.
With a gross floor area (GFA) of approximately 43,500 sq ft, the property includes a spacious lobby, private parking facilities and 184 rooms averaging approximately 175 sq ft. All rooms come with en-suite bathrooms.
At the guide price of $110 million, the asset is priced at approximately $2,528 psf on GFA and $598,000 per key.
Located within the Geylang planning area, the precinct has undergone rapid gentrification, emerging as a vibrant F&B and lifestyle destination with established restaurants, cafes, bars and a growing variety of lifestyle concepts including pet-care facilities and boutique retail, according to CBRE.
In recent years, Geylang has also experienced a significant rise in co-living operators like The Assembly Place, Cove and Figment, underscoring the strong and increasing demand for flexible, community-oriented living options in the city fringe.
This asset was previously in the market for sale at $120 million in 2024. The sale will be conducted through an expression of interest (EOI) exercise closing at 12pm on March 26.
Both foreigners and corporate entities are eligible to purchase, with no additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD) applicable.
See also: Pair of adjoining shophouses in Chinatown up for sale
Michael Tay, deputy managing director and head of capital markets, Singapore at CBRE, says there are fewer than five hotels with more than 150 rooms in the Geylang area, and such freehold assets are “tightly held and rarely made available”. “We expect renewed interest at the revised price point from family offices, high-net-worth individuals, corporates and real estate funds. Over the past year, demand for hospitality assets has remained strong, evidenced by transactions such as Hotel Miramar and 115 Geylang Road (Former Gay World Hotel).”
The asset offers multiple avenues for value creation, according to CBRE. Subject to relevant authorities’ approval, the back alley may be converted into higher-value uses such as outdoor lounge areas, a swimming pool or an outdoor gym.
The hotel can also be repositioned into a co-living asset, adds CBRE.
Joshua Giam, director of capital markets, Singapore at CBRE says: “At the revised guide price, it translates to less than $600,000 per key, which is deemed attractive for a freehold hotel in Singapore, making this offering particularly compelling for investors. In addition, the city‑fringe location of this asset positions it strongly for alternative accommodation models such as co‑living and long‑stay concepts.”
