Hotel Properties

[thleong]

Since Orchard Parade listed its' hotels for REITS, there are some
attention on this counter.
The Hilton and Four Seasons hotel seems undervalued.
Anyone has experience with this counter.
Leong

[sportsinvestment]

I would also like to hear an opinion from someone who knows, on this.

[Thriftville]

I heard somewhere that HPL may work with Wheelock to redevelop that stretch. The issue is timing. If they demolish and rebuild the area, its will worth quite a lot.

[tonylim]

The location of Hilton hotel, four season hotel , The forum and hardrock cafe is not so good as compared to that stretch of Ion, Wisma Atrial, NAC and Orchard Mandarin, this is where the real crowds are . Just look at The Forum, what kind of tenants can they attract ? Not so much footfalls even on weekend. Most of the shop at road level are occupied by Shops owned by Christina Ong.
If they redevelop it, will the rental/economic return justify the total costs ? This is worths pondering.

[Thriftville]

Yup its not easy to spice up that area. Chicken & egg issue, if they don't build, they wouldn't know the result.

[Stocker]

Ion, WA, and NAC are directly connected to Orchard MRT station, so they are situated at the prime of Orchard road. The rest are considered " outskirt ". Need few billions to redevelop that big space,rather big risk to take.

[thefarside]

Its a question on development mix whether its hotel, residential, retail and what kind of tenant mix you want to gather footfalls etc. Do you want to attract 100,000 visitors who spend $50 each, or 1,000 visitors who spend 5,000 dollars each?

Also issue is not around the realisation of additional value - everyone knows that there is some latent value to be unlocked by redevleoping that stretch, but working together in a JV can be very difficult as each owner will have an idea about what they want out of the redevelopment. And as correctly pointed out, the scale of the development could be too big for the market to digest at any point of time.

However I don't agree on the "outskirt" theory - you can't go wrong with hotel plus residential/retail mix in the Orchard belt. Paragon is not connected to NAC / Wisma, but I don't think it is an "outskirt" mall. Not everything has to have a very high PSF to be valuable. Property is also about returns.

[cfa]

'Not everything has to have a very high PSF to be valuable. Property is also about returns'

Then pls enlighten how low PSF to be valuable ? Thanks.

[thleong]

I was in Bali last week. Went to Hard Rock Bali to have a look.
Very very quiet. No one buying the merchandise. There is actually a tent outside selling Hard Rock shorts at a discount.
Seems like the 3 hotels in Singapore make up big % of their assets.
I like it mainly because Hilton 999 years and 4 Seasons are freehold.
Hotels in other countries have lease of 30 to 60 years.
Leong

[thleong]

Wait no more, added a little bit @0.595.

Can you sell down now at 60? Pls? I buy from you

Hello Propertyinvestor,
Bought a few lots of Hotel Properties 2 weeks ago.
Would like to seek your comments on this counter.