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THE third hotel site for 2006 has been put on the reserve list of the Government Land Sales Programme, with six more on the way by year-end.

The latest site is at Bencoolen Street, in an area known as the Arts and Entertainment District. At 0.36 ha, it has a plot ratio of 4.2 and a maximum gross floor area (GFA) of about 161,700 sq ft.

So far, only the 119,000 sq ft site at Unity Street near Robertson Quay has been put up for sale by tender, after a committed bid of $25 million or about $210 per sq ft per plot ratio (psf ppr).

Without a similar focus on tourism, however, the Bencoolen Street site is likely to receive a lower bid price. Hok Yean Chee, executive vice-president and head of advisory (Asia) at Jones Lang LaSalle Hotels, estimates that bids could range from $170 to $205 psf ppr. Ms Hok says that the Bencoolen Street site has a lot going for it, including a long street frontage. It is also close to the Singapore Management University, Nanyang Academy of Fine Arts and the upcoming LaSalle-SIA College of the Arts and Urban Entertainment Centre.

Technically, sites zoned for hotels can be developed up to 40 per cent of its GFA for other uses, including retail. But Ms Hok feels a 'limited service hotel' with probably just one F&B outlet is more likely.

This concept has not quite caught on in Singapore yet, but Ms Hok cites nearby hangout@mt.emily, a small hotel by Cathay Organisation, as a close example. Hangout@mt.emily offers both hotel rooms and dormitory accommodation in a trendy environment.