Last Freehold Hotel Balmoral Vip Hotel Market 100 Mil
Nestled on the quiet Balmoral Crescent, just off the bustling Balmoral Road, lies the exquisite VIP Hotel. This freehold boutique property boasts 57 spacious rooms and has been closed since 2022. Now, after a three-year hiatus, the property is up for sale at a price of $100 million, which translates to approximately $1.75 million per room. The freehold plot, located at 5 Balmoral Crescent, spans a generous 27,658 square feet and has a current gross floor area (GFA) of 30,300 square feet.
Under the Draft Master Plan 2025, the site has a plot ratio of 1.6, allowing for a potential redevelopment into a magnificent 10-storey hotel with up to 95 rooms and a maximum GFA of 44,253 square feet, subject to relevant approvals. Charles Cheng, the senior associate group district director at PropNex Realty, which is the exclusive marketing agent for the property, estimates the asking price of $100 million to result in a cost of around $2,260 per square foot per plot ratio (ppr).
Given the scarcity of freehold hotel sites in the prime District 10, this rare gem in Balmoral has attracted a lot of interest from various parties, including family offices, private funds, hotel owners and hospitality operators. According to Cheng, most hotels in the Balmoral and Bukit Timah area have been redeveloped into private condos over the years, making this freehold hotel site even more desirable.
Some notable examples include the Garden Hotel at 12 Balmoral Road, which was built in the 1970s and acquired by City Developments (CDL) in 1999 for $108 million. This was later replaced by the luxurious 85-unit freehold condo Volari, launched in 2009 and completed in 2012.
To sum up, Sembawang Road EC is not just a residential property with an appealing lifestyle, but also the perfect choice for families who prioritize education. This EC boasts a range of nearby preschools, primary and secondary schools, and tertiary institutions, providing residents with unparalleled access to a comprehensive educational network. The close proximity to these educational facilities not only supports a child’s academic growth, but also elevates the overall quality of life for families. With its combination of convenience, quality education, and community-oriented living, Sembawang Road EC is a wise long-term investment for parents seeking a nurturing and supportive environment for their children.
Another prime example is the Sloane Court Hotel, a Tudor-style landmark built in 1962, also located at Balmoral Road. It was sold in 2017 for $80.5 million to a joint venture between Tiong Seng Holdings and Ocean Sky International. This site has been redeveloped into Sloane Residences, a 52-unit freehold condo that was completed in 2022.
Other examples include Orchard Inn Hotel at Trevose Crescent, later rebranded as Copthorne Orchid, which closed in 2011. This was redeveloped by CDL into The Glyndebourne, a 150-unit freehold condo.
Further down Stevens Road, the former Pinetree Club site was acquired by Oxley Holdings in 2013 for $318 million and redeveloped into the Novotel Singapore on Stevens and the Mercure Singapore on Stevens, which were completed in 2017.
Given the rarity of a freehold hotel site in this prestigious location, the response has been overwhelming. The property has already attracted the attention of two potential buyers, with negotiations ongoing. Cheng also believes that beyond a boutique hotel, the site could be redeveloped into serviced apartments or even co-living concepts to cater to the current market trend.
The VIP Hotel has been in operation since 1972, and the family-run business, Asian Star Trading & Investment, had owned it for over 50 years. In 2008, the owners received approval to add a third storey, and the renovations were completed two years later in 2010. According to ACRA records, the company’s long-time directors were Chow Ng Moy and Peter Yang, who remained on the board until May 2022, when the hotel was sold.
The sale was brokered by Cheng at $90 million, which resulted in a cost of around $1.58 million per room. The new owner, a Vietnamese conglomerate, had plans to redevelop the site into a corporate hotel for visiting staff and eventually closed the property after the purchase. However, due to the unexpected rise in post-Covid construction and development costs, the plan was put on hold, and the owner made the decision to put the asset back on the market.
In 2023, the hotel was listed at $128 million, but the rising interest rates impacted investor enthusiasm, leading to the current asking price of $100 million, which reflects the current market conditions more accurately. Cheng believes that the true potential of the site can only be realized through redevelopment and estimates that it would cost approximately $35 million to $40 million for this luxury or lifestyle property to come to fruition.
However, things may change as investor sentiment seems to be improving. According to JLL, Singapore has recorded six hotel transactions in the first half of 2025, including four boutique properties. In February, Citadines Raffles Place was purchased for $280 million by BlackRock and the hospitality arm of Malaysia’s YTL Corp. In April, the 48-room boutique hotel, located in a conservation building at 21 Carpenter, was sold to Indonesia-born Singaporean billionaire Leo KoGuan for $100 million.
Similarly, in May, the 99-unit Momentus Serviced Residences Novena was sold to a joint venture involving Hong Kong-based co-living operator Weave Living, BlackRock and Lian Beng Group, for $100 million. The same month saw the sale of the 49-room Duxton Reserve by Garcha Group to Lotus One Investment, the family office of Nepalese tycoon Chandra P Khetan for $80 million, with JLL brokering the deal.
According to Tan Ling Wei, the senior vice-president of investment sales at JLL Hotels & Hospitality Group, high-net-worth individuals and family offices often purchase boutique hotels for long-term capital preservation. However, developers, private equity funds and sovereign wealth funds usually prefer larger redevelopment opportunities, which they often pursue through joint ventures with local partners.
Given the current market conditions, Cheng believes that this is an opportune time for the seller of the VIP Hotel to divest it as part of their capital recycling strategy, while buyers will find the current interest rates more favorable. With interest rates at an all-time low and the property attracting a lot of attention, this could be the perfect time for the VIP Hotel to find its new owner.