Just over a month after officially opening its doors to guests, The Westin Singapore hotel has been sold for $468 million to Japan-based property developer and investor Daisho Group.
The acquisition of the 305-room, 99-year leasehold hotel located in Asia Square Tower 2 at Marina Bay is Daisho’s maiden investment in Singapore. The purchase price translates into a hefty $1.5 million per room, possibly a new record for a hotel here.
Earlier this year, Bright Ruby Resources, a company controlled by a family from China, was reported to have paid between $1.4 million-$1.5 million per room for the freehold Grand Park Orchard Hotel, smashing the previous $1.1 million per room record.
According to Daisho Development Singapore director Mamoru Kohda, he said that Daisho decided to acquire the hotel because of its location and the group’s view on room demand in the area. The Marina Bay area is developing very quickly and has a very strong pool of office tenants, hence the hotel is likely to be strongly supported by a corporate clientele.
The Westin Singapore is the first hotel property to be managed under the Westin bran. It occupies levels 32 to 46 of Asia Square Tower 2, with offices taking up the bulk of the remaining floors. It is the first hotel in Singapore to be located within an office building, and has the highest hotel lobby here, on the 32nd floor.
Market experts noted on the slight under-supply in the Marina Bay area as there are not enough hotels in the vicinity. As the area develops and more corporations are located there, demand for hotel rooms would rise and this could in turn, raise room rates. Hence, Daisho is buying into the future.
Currently, published room rates at The Westin Singapore start at $650 per night for a standard room, but actual rates vary depending on demand and supply. A standard room can be booked at between $300 and $400 a night depending on the season.