SINGAPORE Millennium & Copthorne Hotels PLC has agreed to sell its 360-key Studio M Hotel Singapore to an affiliate of CDL Hospitality REIT for £77.3 million, or about £215,000 per key.
The transaction is expected to close in the second quarter. M&C will continue to manage the hotel. CDL will enter into an initial 20-year fixed term lease with M&C subsidiary Republic Iconic, extending the lease for an additional 50 years.
M&C expects to realize pre-tax profit of about £17.2 million on the all-cash transaction.