Republic Hotels and Resorts has put in the highest bid for a hotel land parcel at the corner of Mohamed Sultan Road and Nanson Road.Its bid of $45.8 million works out to S$518 per square foot per plot ratio.
The bids ranged from a low of $32 million to a high of $45.8 million.
Republic Hotels and Resorts is linked to property developer City Developments.
CDL says in a statement that Republic Hotels & Resorts intends to develop a contemporary limited service hotel on the site.
The hotel, which will have between 350 and 400 rooms, will cater to the corporate traveller looking for value.
Consultant CB Richard Ellis says CDL is expected to place the developed hotel into its hospitality real estate investment trust if it wins the site.
This could be part of the reason for its high bid, according to CBRE.
The bidders include Park Plaza (S$35.3m), CityView Development (S$34.1m) and Garden City Hotel Holdings (S$33m).
A 10-storey hotel can be built on the site, which spans some 2,932 square metres.
It has an approximate gross plot ratio of 2.8, with a lease of 99 years.
URA is due to award the tender at a date to be announced.
Source: Channel NewsAsia, 21 November 2006