Park Hotel Group has entered into an agreement to sell its Grand Park Orchard hotel and adjoining Knightsbridge retail mall.
Singapore-based Park purchased the property, then known as the Crown Prince Hotel, for SG$300 million (US$238m) in 2005, and has since undertaken a major SG$80m refurbishment and rebranding. The revamped 308-room hotel reopened in 2010. It has now been sold to Glory Property Investment Singapore, although the financial details of the sale were not revealed.
This deal follows the recent sale of another of Park’s Singapore properties, the Park Hotel Clarke Quay, as the company shifts its business model towards that of a hotel management company. The Clarke Quay property was sold to Ascendas Hospitality Trust for SG$300m in April 2013.
“There is a high scarcity value for such a prime freehold asset located along Orchard Road. The demand and appeal for quality assets with strong stabilised cash flow remains overwhelming,” said Park’s CEO, Allen Law. “The group has aggressive plans to grow and we continue to do so through acquisition and management contracts.”
Park continues to own and operate six hotels in Singapore, China, Hong Kong and Japan, while two more Singapore properties – Park Hotel Alexandra and Park Hotel Farrer Park – are due to join in 2015, both on management contracts.
Park Hotels sells another Singapore property
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