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Judging by its location, Hok Yean Chee, executive vice-president and head of advisory (Asia) at Jones Lang LaSalle says that a 'lifestyle boutique hotel concept' would probably work.

The 0.39 ha site has a plot ratio of 2.8 and has a maximum gross floor area of 11,056 sq m. The main frontage is along Clemenceau Avenue and Unity Street, but it does also enjoy direct access to the promenade at the Singapore River. And going by the reversal of fortunes at the upgraded and now bustling Clarke Quay, Ms Hok expects there could be some spillover effect for any new hotel in the vicinity.

There already are hotels along the river, including the neighbouring Robertson Quay Hotel, but Ms Hok believes an appropriately 'hip hotel' like the New Majestic might make a difference. At about $25 million, Ms Hok works out that the cost of the hotel would be about $150,000 per room (or 'per key' in industry language). Most five-star hotels cost upwards of $500,000 per key to build.

Wallace Chu, head of research at Savills Singapore, says that there is no indication as to who might make the winning bid, adding that he does not rule out foreign developers. 'They might want to take advantage of the revamp of Clarke Quay. I do see the improvements in the entertainment factor there,' he added.

This is the first Government Land Sales Scheme hotel site on the reserve list to be launched this year. Another site in Sinaran Drive near Novena MRT station has yet to receive a minimum committed bid