Ibis on Bencoolen sold for $200m

Aug 3, 2010 - PropertyGuru.com.sg

A Singaporean buyer has snapped up the three-star hotel Ibis on Bencoolen for about $200 million.

Real estate investor LaSalle Investment Management and hospitality group Accor said they sold the 538-room hotel, but did not disclose the identity of the buyer and its exact selling price due to confidentiality obligations.

However, a report said that a subsidiary of island-based Grand Line International has paid over $200million for the 538-room hotel.

Based on past reports, LaSalle and Accor spent $145 million to develop the hotel at Bencoolen Street when they acquired the site through a public tender four years ago in a70: 30 venture. The hotel opened in February last year.

Accor, owner of the Ibis brand, will still manage the hotel under a long-term management contract.

“The sale of the hotel is in line with Accor's 'asset right' strategy where the value of the property is being realised with Accor continuing to manage the hotel with the Ibis brand, under a long-term management contract,” said Michael Issenberg, chairman and chief operating officer of Accor Asia Pacific.

LaSalle and Accor offered Ibis Singapore up for sale through a private tender in May. The two decided to offer the hotel for sale after receiving several unsolicited offers frominvestors.

“Singapore lacked quality inventory of economy hotel rooms, despite strong inbound demand from value-conscious travellers in Asia. Although around 80 per cent of travellers fly economy class, some90 per cent of hotels rooms in Singapore were business or first class,so there was a clear market mismatch which we capitalised on," said Andrew Heithersay, international director at LaSalle Investment Management.