A HOTEL site at Mohamed Sultan Road will soon be put up for sale after an unnamed developer committed to pay at least $26 million for the site.
The Urban Redevelopment Authority yesterday said it will launch the sale tender in two weeks' time.
The 0.29ha site can accommodate a hotel of up to 10 storeys and a gross floor area of about 8,210 sq m.
The Government had earlier estimated that the 99-year leasehold site could take about 130 rooms.
But assuming that the successful developer is looking at building a mid-tier hotel, he could build about 200 to 250 smaller hotel rooms, said Mr David Ling of hospitality consultant HVS International.
The site is close to the boutique establishment Gallery Hotel and the Singapore River. Gallery Hotel's owners are believed to have looked into the possibility of acquiring this site.
This is the second hotel site to have been triggered for sale from the reserve list this year. The first was at Clemenceau Ave/Unity Street, which has since been sold to the Park Hotel Group for $55.5 million or more than double the site's trigger bid of $25 million.
Reserve list sites are put up for tender only if a developer lodges a bid at a minimum acceptable price.
While the Unity Street site boasts a better frontage, this site should attract a fair bit of interest because of an improving hotel market, said Mr Ling. Also, the site can take a mid-tier hotel, which is in short supply here.
JOYCE TEO