OUE Wins Tender for Development and Lease of Changi Airport Hotel

Changi Airport has awarded a tender to OUE for the development and lease of a new hotel at the Singapore airfield’s Terminal 2.

The proposed 255-key Hotel Indigo Changi Airport is envisioned as the city-state’s first zero-energy hotel, Changi Airport Group and OUE said Friday in a release. The project is expected to be completed and fully operational by 2028.

OUE, the SGX-listed developer controlled by the Riady family behind Indonesia’s Lippo Group, will be granted a strata sublease until 29 August 2083. The lease tenure of 58 years is based on a hand-over date of no later than 12 months from the date of the tender award.

“We are very honoured to be awarded this opportunity to develop a new hotel at Changi Airport, a globally renowned aviation hub that is synonymous with innovation and excellence,” said Brian Riady, deputy CEO and executive director of OUE. “We look forward to continuing our long-standing partnership with CAG, and to introducing fresh and innovative hospitality concepts to visitors of Changi Airport.”

Zeroing Out Energy

Hotel Indigo Changi Airport aims to achieve operational energy neutrality through features like solar photovoltaic panels, hybrid cooling systems, naturally ventilated corridors and rainwater harvesting.

“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,” said CAG CEO Lee Seow Hiang. “With travel demand continuing to soar and passenger traffic growing beyond pre-COVID levels, the new hotel will elevate the hospitality offerings at Changi Airport.”

Stretching 163 metres (178 yards) lengthwise, the hotel is planned to include a rooftop day club, bar and infinity pool with panoramic views of the runway, airport boulevard and skyline. The design is to centre on a “floating forest” with hanging epiphytes stretching over seven storeys, according to Friday’s announcement.

The new project is expected to complement OUE’s existing landside hotel, Crowne Plaza Changi Airport, which is held by the developer’s OUE Commercial REIT. The 575-room hotel is managed by hospitality giant IHG and was valued at S$519 million ($381.4 million) at the end of 2023.

Arrivals Surge

OUE will use a combination of internal cash resources and borrowings to fund the hotel project, which is unlikely to have any material impact on the company’s consolidated net tangible assets or earnings per share, it said.

For Changi, which trails only Indonesia’s main airport in terms of passengers served in Southeast Asia, the project promises greater capacity to accommodate guests after Singapore visitor arrivals surged 115 percent to 13.6 million last year, according to official statistics.

“It will serve our visitors well with its differentiated facilities and convenient access to T2,” Lee said. “We congratulate OUE on being awarded the tender and look forward to a close partnership in the coming years to bring the idea for Hotel Indigo Changi Airport to life.”