KATONG Plaza - currently zoned for commercial and residential use - has obtained approval from the Urban Redevelopment Authority (URA) for hotel use at a gross plot ratio of 3.0.
The freehold site has a land area of 34,044 square feet and a total allowable maximum gross floor area of 102,133 sq ft.
Marketing agent Huttons Asia, which relaunched the site for sale by public tender on Thursday, said in a statement that this can yield up to about 300 hotel rooms with an average room size of 215 sq ft.
The asking price remains unchanged at S$188 million. This works out to a land rate of S$1,968 per sq ft per plot ratio, including a S$13 million development charge.
Terence Lian, the head of investment sales at Huttons Asia, said that Singapore, being a global financial hub with an emphasis on MICE (meetings, incentives, conventions & exhibitions) tourism could "easily capitalise" on this trend by building more hotels.
"It is a rare opportunity to invest in Katong Plaza due to a muted supply of hotels at a 10-year low, coupled with the rise in tourism here," he said.
Huttons Asia said that Katong Plaza is nestled within an established food & beverage and retail belt in the heart of Katong. It is located about 120 m away from the future Marine Parade MRT station, which is seven stops away from Raffles Place MRT.
The public tender for Katong Plaza closes on April 9 at 3 pm.