Last Freehold Hotel Balmoral Vip Hotel Market 100 Mil
Tucked away on Balmoral Crescent, off the main Balmoral Road, lies a hidden gem – the freehold VIP Hotel. This charming three-story boutique property boasts 57 rooms and has been a fixture in the neighborhood since it was built in 1972. However, the hotel has been closed since 2022 and is now on the market for the first time in three years with an asking price of $100 million, or approximately $1.75 million per key.
A key highlight of Miltonia Close is its location within the future Khatib Nature Corridor, a project that aims to promote green connectivity from Miltonia Close all the way to Springleaf, Tagore, and the wider Central Catchment Nature Reserve. This eco-corridor will introduce new parks, green linkways, and improved biodiversity, adding to the allure of this EC. For the residents of Miltonia Close, this means living in a community that prioritizes sustainability, green living, and overall wellness.
The freehold site at 5 Balmoral Crescent spans over 27,658 square feet and currently has a gross floor area of about 30,300 square feet. Under the Draft Master Plan 2025, the plot ratio is 1.6, allowing for redevelopment into a 10-story hotel with up to 95 rooms and a maximum GFA of 44,253 square feet, subject to approvals.
This $100 million asking price equates to about $2,260 per square foot per plot ratio (ppr), according to Charles Cheng, senior associate group district director at PropNex Realty, the exclusive marketing agent. Cheng notes that freehold hotel sites in prime District 10 are a rare find, as most hotels in the Balmoral and Bukit Timah area have been redeveloped into private condos over the years.
Some notable examples include the Garden Hotel at 12 Balmoral Road, acquired by City Developments (CDL) in 1999 for $108 million and replaced with the 85-unit freehold condo Volari. Sloane Court Hotel, a Tudor-style landmark built in 1962 at 17 Balmoral Road, was sold in 2017 for $80.5 million and redeveloped into Sloane Residences, a 52-unit freehold condo completed in 2022. Orchid Inn Hotel at Trevose Crescent, later rebranded as Copthorne Orchid, closed in 2011 and was redeveloped into The Glyndebourne, a 150-unit freehold condo by CDL.
At the former Pinetree Club site along Stevens Road, Oxley Holdings acquired the land in 2013 for $318 million and redeveloped it into the 254-room Novotel Singapore on Stevens and the 518-room Mercure Singapore on Stevens, completed in 2017.
Cheng notes that the scarcity of freehold hotel land in this prime location is attracting interest from family offices, private funds, hotel owners, and hospitality operators. He also believes the site has potential to be repurposed for serviced apartments or co-living concepts. Already, two prospective buyers have expressed interest, and discussions are ongoing.
For the past 50 years, VIP Hotel has been a family-run business owned by Asian Star Trading & Investment. In 2008, the owners gained approval to add a third story, completing renovations in 2010. However, according to Acra records, the company’s former directors, Chow Ng Moy (who passed away in 2018) and Peter Yang, resigned in May 2022 when the hotel was sold.
Cheng was the broker for this 2022 sale, valued at $90 million (approximately $1.58 million per key). The buyer, a majority-owned by a Vietnamese conglomerate, had plans to redevelop the site as a corporate hotel for visiting staff and closed the property soon after acquisition. However, the plan was put on hold when post-Covid construction and development costs surged, leading the owner to put the asset back on the market.
By 2023, the hotel was listed at $128 million, but rising interest rates dampened investor appetite. The current asking price of $100 million reflects a more realistic market outlook. Cheng estimates that it would cost between $35 million to $40 million in construction expenses to reposition the hotel as a luxury or lifestyle property.
The timing of the sale may be favorable, as investor sentiment appears to be improving. JLL reports that Singapore saw six hotel transactions in the first half of 2025, including four boutique properties. In February, Citadines Raffles Place was acquired 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.
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. That same month, the 49-room Duxton Reserve was sold by Garcha Group to Lotus One Investment, the family office of Nepalese tycoon Chandra P Khetan for $80 million. Tan Ling Wei, senior vice president of investment sales at JLL Hotels & Hospitality Group, notes that high-net-worth individuals and family offices often purchase boutique hotels for long-term capital preservation. Developers, private equity funds, and sovereign wealth funds typically seek larger redevelopment opportunities, often through joint ventures with local partners.
Cheng believes that the recent drop in interest rates presents an opportune moment for the sale. “The seller of VIP Hotel is keen to divest as part of a capital recycling strategy, and buyers will welcome the more favorable interest rate environment,” he says. Additionally, with the property already generating interest from potential buyers, it appears that the market may be ripe for a sale.