Singapore-listed property and hospitality group UOL has sold an asset to Worldwide Hotels for S$525m (€567m).

Worldwide Hotels, the hotel group controlled by billionaire Choo Chong Ngen, is buying Parkroyal Kitchener Hotel in Singapore’s Little India. The agreed price was 24% above the property’s S$423m valuation as of 31 December.

The agreement between Pan Pacific Hotels, a subsidiary, OUL, and Midtown Properties will see the disposal of all 5m ordinary shares of Park Kitchener Hotel.

Worldwide Hotels subsidiary, Legend Land Melbourne, is also buying the Novotel & Ibis Melbourne Central hotel for A$170m (€104.2m) from Well Smart investment.

The deals represent the highest price yet paid for a hotel in Singapore and the highest price paid in Australia in six years.

CBRE Hotels’ national director, Wayne Bunz, who brokered the sale of the Melbourne hotel, said the Melbourne deal evidenced the confidence international capital sources had in Australia’s hotel market, given its safe-haven status and ability to provide a strong inflationary hedge.

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