Since last year, SLA has awarded four state properties in the Changi area for commercial use.
Two are now restaurants while the former Changi General Hospital at Halton Road is being transformed into a spa resort. The groundbreaking will take place next month and the resort is expected to be ready by next year.
Hotel operators can now look forward to developing another state property.
The Singapore Land Authority (SLA) has launched for public tender a state property at Nos. 33 and 42 Hendon Road.
According to its media statement: "This latest State property to be tendered is well suited for hotel use as the Changi area is being transformed into an exciting destination for locals and tourists alike, with its wide-ranging leisure, recreational and lifestyle attractions."
This property is part of a former military camp and has a land area of 9,666 sqm - slightly larger than a football field - with a gross floor area of 5,097 sqm.
It comprises two blocks of three-storey buildings and a covered shed.
The tenancy is for an initial term of three years and is renewable on terms up to 2018. The guide rental is $28,500 per month.
Mr Teo Cher Hian, Director of Land Operations (Private) Division, said of the Hendon tender: "This latest property will add greater buzz and vibrancy to the Changi area."
Interest from hoteliers
According to the Singapore Tourism Board (STB), leading hoteliers have expressed keen interest in this property.
Ms Caroline Leong, STB's Director of Travel Services & Hospitality Business, said: "With its lush greenery and historical charm, which the old military barracks lend, a hotel development on the former Changi Camp site will provide an ideal alternative to visitors who prefer staying amidst a rustic environment."
First state property to become a hotel
The first state property that has been converted for hotel use is No. 175A Chin Swee Road.
Today, it is a 140-room boutique business hotel called "Hotel Re!".
It was officially opened for business in mid-May this year with an initial occupancy rate of around 50 per cent. Mr Joseph Ong, the hotel's general manager, expects the occupancy rate to improve in the coming months.
According to STB, mid-tier and economy hotels enjoyed healthy average room occupancy rates of 85% and 87% respectively in the 1st half of 2008.
Tender details
The site showround for the former Changi Camp will be on Aug 13.
The tender will remain open for three weeks from Aug 6. It will close on Aug 27.