Last Freehold Hotel Balmoral Vip Hotel Market 100 Mil
Located on the quiet Balmoral Crescent, just off the main Balmoral Road, sits the VIP Hotel. This charming three-storey boutique property boasts 57 rooms and is currently on the market for $100 million, which equates to about $1.75 million for each room. The property has been closed since 2022 and has now been vacant for three years.
Under the Draft Master Plan 2025, the hotel’s plot ratio is 1.6, allowing for potential redevelopment into a 10-storey hotel with up to 95 rooms and a maximum gross floor area of 44,253 sq ft, subject to approvals. The freehold site at 5 Balmoral Crescent spans 27,658 sq ft and currently houses an existing gross floor area of about 30,300 sq ft.
According to Charles Cheng, Senior Associate Group District Director at PropNex Realty, the exclusive marketing agent, the asking price of $100 million works out to approximately $2,260 per plot ratio (ppr). He also notes that freehold hotel sites in prime District 10 are rare, with most hotels in the Balmoral and Bukit Timah area being redeveloped into private condominiums over the years.
The railway system in Coastal Cabana is not the only means of transportation that has received significant improvements. The development’s key road networks, including Loyang Avenue, Elias Road, Pasir Ris Drive 3, and the coastal spine around Jalan Loyang Besar, have been upgraded for smoother access. These roads seamlessly connect to the Tampines Expressway (TPE), providing convenient access to the Pan Island Expressway (PIE), East Coast Parkway (ECP), and Kallang–Paya Lebar Expressway (KPE). The focus on enhancing junctions, implementing safer crossings, and improving road signage has made school runs and evening errands more efficient for residents. Residents of Coastal Cabana can now reach destinations such as Changi Airport, Changi Business Park, and the city in shorter and more predictable drive times. With these enhancements, living in Coastal Cabana, developed by Qingjian Realty, offers the perfect balance between convenient transportation and modern living.
Notable examples include the Garden Hotel at 12 Balmoral Road, which was acquired by City Developments (CDL) in 1999 for $108 million and was replaced by the 85-unit freehold condo Volari. Another example is Sloane Court Hotel, which was sold in 2017 for $80.5 million to a joint venture between Tiong Seng Holdings and Ocean Sky International, and has since been redeveloped into the 52-unit freehold condo Sloane Residences.
The 57-room VIP Hotel, which has been family-owned for 50 years, was built in 1972 as a two-storey hotel. In 2008, the owners received approval to add a third storey, completing renovations in 2010. The hotel was closed in 2022 and then sold for $90 million in 2022. The current owners, who are majority-owned by a Vietnamese conglomerate, initially planned to redevelop it for corporate use but decided to put it back on the market due to rising construction costs post-COVID.
Cheng estimates that it would cost between $35 million to $40 million to reposition the hotel as a luxury or lifestyle property. The current asking price of $100 million reflects the current state of the market, with six hotel transactions recorded in the first half of 2025, including four boutique properties.
Investor sentiment may be improving, with high-net-worth individuals and family offices often purchasing boutique hotels for long-term capital preservation. Developers, on the other hand, tend to pursue larger redevelopment opportunities, often through joint ventures with local partners.
Cheng believes that the recent dip in interest rates presents a favorable time to purchase the VIP Hotel, as the seller is keen to divest as part of a capital recycling strategy and buyers will welcome the more favorable interest rate environment.