A Singapore builder that usually builds rather than buys hotels bought a heritage hotel in the city in November 2023, reportedly for a bargain. It closed the property in April 2024 for renovations, re-opened it five months later under a brand that’s new to Asia, QT Hotels & Resorts, and has now put the hotel up for sale.
This could be a study in seizing rare opportunities in the market and flipping an asset at the right time after an asset enhancement.
The builder, Sunray Group, snapped up the 134-key Telegraph Hotel from Singapore-based Viva Land via a real estate firm, Phoenix Property, for a speculated price of S$170 million to S$180 million, or S$1.3 million per key. That’s 25% to 30% down from the price Viva Land paid – S$240 million or S$1.8 million per key – when it bought the hotel from Royal Group in May 2022.
Royal Group repurposed the 1920s colonial building into a hotel after winning the bid for the 60-year leasehold site at S$86 million in 2011. The hotel, Sofitel So, opened in May 2014 following a S$130 million renovation. Viva Land renamed the property Telegraph Hotel after acquiring the hotel in 2022 and selling it at a loss to Sunray in 2023.
Media reports at the time linked the markdown to an asset fire sale by Viva Land, which included the hotel and an adjacent office tower, following its alleged link to Vietnam's Van Thinh Phat Group, whose chairwoman Truong My Lan was arrested in October 2022 for financial fraud.
Upon buying, Sunray, which is well-versed with interior fit-out, addition and alteration works of heritage buildings, including Raffles Hotel Singapore and 21 Carpenter hotel, worked deftly and refashioned the hotel into QT Singapore within months. Its partners on the project included EVT, which owns the QT brand, interior designer Nic Graham & Associates, and asset managers NineCo+ and High Street Holdings Singapore. The acquisition and speed-to-market won it HICAP Single Asset Transaction of the Year 2024.
In contrast to Sofitel So, QT Singapore mixes heritage with bold eclectic design and entertainment. Its central location in the CBD checks the location box. It spots redesigned guestrooms and QT signatures such as a Manhattan steakhouse and rooftop with cocktail bar, which means little or no capex is needed for potential buyers. And though new to Asia, QT shows its brand marketing prowess: the Singapore hotel is featured in TIME's annual list of the World's Greatest Places for 2025.
Tidy returns
So why is Sunray selling?
Sharing his personal opinion, hotel and restaurant owner Loh Lik Peng of Unlisted Collection, who is familiar with heritage and conservation assets, said he would do the same. “It's a very good return on investment, given the upside from the very quick flip: bought it as semi distressed, put in some capital, then flip it for a tidy profit when the market is receptive to such assets.
“Lower interest rates also make it much easier to fund such purchases right now. Singapore hotels have always traded at a premium on asset price to the real yield; so, if you are not a long-term investor in this segment, it is tempting to sell and recycle your funds to an asset class with better yields.”
Horwath HTL’s Robert Hecker believes the timing is right. “Hotel investors are keen on getting into Singapore. So, I can only assume [Sunray] wants to take advantage of the current strong interest – and pricing – before anything changes.”
JLL and CBRE, joint marketing agents for the sale, are not disclosing a specific guide price at this time.
Nevertheless, the new price benchmark for this segment was set in April when Timemerchant Capital acquired the 48-key ‘shophouse’ hotel 21 Carpenter from 8M Real Estate for about S$100 million, or S$2.08 million per key. This broke the previous benchmark of S$1.8 million per key held by Royal Brothers' Sofitel So sale to Viva Land.
Asked if the new benchmark could go higher, Ling Wei Tan, JLL’s senior vice president, hotels investment sales, Asia Pacific, said only if the asset is exceptional.
“While S$2 million per key is a significant benchmark set by 21 Carpenter, price per key is only one metric. Investors also evaluate yield profile and price per square foot in Singapore. In Singapore’s competitive hospitality market, investors actively seek differentiated assets and pay premiums for properties with distinct positioning and competitive advantages. This suggests price per key could rise further, but only for exceptional assets that justify premium valuations through prime locations, unique concepts, strong brands, or superior operations,” she said.
Of QT Singapore, she said it is a “compelling investment potential,” being a new-to-market brand with significant ramp-up upside, including ADR and occupancy growth as the brand establishes market presence and operational efficiency gains once stabilized. The property’s lifestyle positioning also commands a premium rate in Singapore’s competitive landscape.
The hotel sits on a 1,860 sqm site, with a gross floor area of 7,450 sqm. Its leasehold tenure lasts for another 46 years but there is a “high potential” for a lease extension, which enhances the asset’s capital value and secures its long-term investment horizon, Tan said.
When asked about its performance to-date, Tan said the hotel had “greatly outperformed its STR competitive set” despite being in its first year of operation. She declined to disclose the length of QT’s management contract.
Who's buying?
JLL is seeing robust interest in the property from both foreign and local high-net-worth individuals and family offices.
According to Tan, the buyer pool in Singapore has expanded significantly due to renewed investor confidence, lower borrowing costs – three-month SORA (Singapore Overnight Rate Average) fell from 3% in January to 1.3% in November – and a global trend towards flight-to-safety markets amid geopolitical tensions. Hospitality assets are receiving increased institutional and private investor attention, thanks to Singapore’s stable regulatory environment, transparent legal system and strategic Southeast Asian location, she said.
“On top of these strong market fundamentals, this [QT Singapore] is a marquee asset that is performing well. This creates the ideal condition for a buyer who wants a great product in an iconic market. They are not just buying potential; they are acquiring a successful, cashflow-generating asset in one of the world's most resilient cities,” Tan added.
Tan, who also handled the sale of 21 Carpenter and Duxton Reserve in April and May respectively, said those deals already showed the remarkable depth and conviction of the buyer pool from family offices and UHNWIs for Singapore hotels, especially for assets of significant heritage.
“These buyers are not just acquiring real estate; they are acquiring legacy assets with a compelling story. The unique, irreplaceable nature of these properties strongly resonates with this capital source, which prioritizes long-term wealth preservation and trophy status,” she said.
By Raini H.R.
