Good to see so much interest! 'Price per key' is a key measure used to value a hotel. I don't think it is a aggressive for Amara. Wanderlust, a boutique hotel in Little India, sold for S$1.3m per key. Another hotel in the same vicinity - Park Hotel Farrer Park - is asking for the same. In terms of location, Amara's Tanjong Pagar is definitely more prime.
In fact, EL Development PAID what is effectively $1.3m per key for his site in Hill Street. The total development cost of his 300-room hotel works out to $438m. Given that his cost is $1.3m per key, how much do you think it will be placed on the market? Like Tanjong Pagar, Hill Street is also on the fringe of CBD.
I think he thought one room is like a condo unit, sells for 1M per unit...
Hmm.. Don't you think 1m a room looks a bit aggressive. The comps you mention looked much more high end. I see the room price is about 200 per night (TripAdvisor says 132 actually) , 365 days, 80% occupancy and 30% margins (aleaady on the high side) ... That's only 17k per room. Using 1m per key, you imply a rate of like 1.7%. Even if you add services like restaurants etc also makes it too expensive valuation.
Reply to @l0nEr : The comps are not more high end. The Oxley hotels are 4-star hotels on the fringe of Orchard. Amara, too, is 4-star on the fringe of Raffles Place. Amara's rooms are far larger at over 30sqm, vs Novotel's 20sqm.