Jones Lang LaSalle Hotels has negotiated the sale of the Parkroyal on Coleman Street (formerly known as Grand Plaza Parkroyal Hotel), Singapore to Park Hotel Strategic Investments Limited. Craig Collins, Executive Vice President and Tom Oakden, Senior Vice President Jones Lang LaSalle Hotels Asia, negotiated the transaction on behalf of Singapore-listed Hotel Plaza Limited.
Occupying a central location in the City Hall area of Singapore, the 330-room Parkroyal on Coleman Street including an adjacent shopping arcade, was acquired by PHSIL through the purchase of 100% of the shares in the owning company.
According to Mr Collins, this transaction demonstrates why Singapore is one of the most keenly contested destinations for hotel investment in Asia currently. “Singapore’s stable political and economic environment provides investors with a safe haven. The strong upturn in hotel operating performance in Singapore this year and positive developments such as the creation of Integrated Resorts set the stage for a buoyant hotel market in Singapore. The sale of the Parkroyal on Coleman Street represents a well-timed opportunity for Hotel Plaza Limited to seize the aggressive investor market and for PHSIL to acquire a high quality hotel property with strong upside potential,” Mr Collins said.
The sale of the Parkroyal on Coleman Street is the second hotel investment transaction that Jones Lang LaSalle Hotels has accomplished in Singapore over the past 18 months, following the sale of the Crown Hotel at Orchard in 2005.
“Despite the tight supply of quality assets in the market, Singapore will continue to be high on the list of regional investors, both locally-based and from Hong Kong, as well as from a growing pool of international investors from the United States and Middle East,” said Mr Oakden. “Investment banks, opportunity funds and hotel operators are also keen to get a piece of the action in Singapore and we anticipate that where future investment opportunities arise, these will be met with strong interest.”