SINGAPORE, 6 July 2023: JLL announced Wednesday it advised Pan Pacific Hotels Group on the sale of the Parkroyal on Kitchener Road to Midtown Properties Pte Ltd, part of Worldwide Hotels Group.
The purchase consideration of SGD525 million (USD388 million) represents Singapore’s largest single-asset hotel transaction and the second largest in Asia Pacific in 2023.
The 542-key freehold hotel is in the heart of the historic Little India district near City Square Mall, Mustafa Centre and Farrer Park MRT station.
Adding to the asset’s attractiveness, the Parkroyal on Kitchener Road completed a major refurbishment in 2020, adding more state-of-the-art fit-outs to meet maturing guest experience demands.
“As the largest single-asset hotel transaction ever recorded in Singapore and the second largest in the Asia Pacific region in 2023, this deal underscores the enduring appeal of Singapore as a haven investment destination amidst global macroeconomic uncertainty and its status of one of the most attractive long-term hotel markets globally,” said JLL Hotels & Hospitality Group chief executive officer, Asia Pacific Nihat Ercan.
“JLL is delighted to have advised on this landmark transaction, secured through a comprehensive marketing campaign targeting active sources of capital globally and regionally. Furthermore, we see this sale as reinforcing our confidence in strong buyer appetite regionally for quality hotel assets and a willingness by investors to deploy capital into key markets and strategic assets.“
The Parkroyal on Kitchener Road transaction is also the first major agent-brokered hotel transaction in Singapore post-pandemic, and it follows JLL’s successful sale of the SHREIT portfolio in Indonesia and Vietnam, which the firm believes is indicative of stronger investment activity to materialise across the region during the second half of 2023. This transaction holds significant importance for the market, following the successful sales of the Andaz Singapore and the Oakwood Premier OUE since 2019, also brokered by JLL.
