OUE : LJ3 0% won a tender for the lease and development of a new 255-key hotel located at Changi Airport’s Terminal 2 (T2).
Changi Airport Group (CAG) awarded the hotel tender to a private trust wholly owned by the real estate and healthcare group, OUE said on Friday (Apr 26).
CAG will grant OUE a 58-year strata sublease until Aug 29, 2083, which is based on a handover date of no later than 12 months from the date the tender is awarded.
The new hotel, to be called Hotel Indigo Changi Airport, will be completed and fully operational by 2028, both parties said.
CAG chief executive Lee Seow Hiang said: “The hotel concept proposed by OUE was the most compelling and promises to be the first zero-energy hotel in Singapore, and possibly the first for an airport hotel in the world.”
Its design will feature a “floating forest” concept, with layers of rainforest and hanging epiphytes stretching over seven storeys. The building will also have a rooftop day club, bar, and infinity pool.
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Hotel Indigo Changi Airport aims to achieve “operational energy neutrality” through the use of solar photovoltaic panels, hybrid cooling systems, naturally ventilated corridors and rainwater-harvesting technology.
“By combining energy-efficient design with low-energy operations while maximising on-site solar energy generation, Hotel Indigo Changi Airport marks a major milestone for OUE as we continually strive to find more sustainable ways to conduct our business,” said Brian Riady, OUE’s deputy chief executive and executive director.
CAG’s Lee said the new hotel will elevate Changi Airport’s hospitality offerings as travel demand continues to soar and passenger traffic grows beyond pre-Covid levels.
It will also complement Changi Airport’s existing hotels, which include Yotelair at Jewel Changi Airport and Terminal 3’s Crowne Plaza Changi Airport, which is also owned and leased by OUE Group.
OUE plans to fund the T2 hotel development project with a combination of internal cash resources and borrowings. It does not expect the project to have any material impact on the group’s consolidated net tangible assets or earnings per share for the current fiscal year ending Dec 31, 2024.
Shares of OUE closed flat at S$1.07 on Thursday.
