Pontiac Land sees mixed-use opportunities beyond Singapore

SINGAPORE – Singapore-based Pontiac Land Group, a low-key company whose distinctive real estate collection speaks for itself, is more committed than ever to mixed-use developments that over time can transform neighborhoods and communities.

No longer Singapore-centric, Pontiac Land now owns residential, commercial and hotel assets in the Maldives (Fari Islands), Sydney (Capella Sydney and the Lands by Capella) and New York City (the Manhattan condominium 53W53 adjacent to MoMA). It is looking to invest further in Singapore, Australia and the U.S., and in new markets such as the U.K., Japan and selective Southeast Asian countries.

“One of our thoughts now is centered on integrated developments,” CEO David Tsang told Hotel Investment Today. “We’ve seen tremendous synergies [in mixed-use] with what we’ve done in the past with Millenia Singapore and what we’re doing in Sydney.”

In Sydney, the privately held company owned by the Kwee family is restoring two iconic buildings, the Education and Lands buildings located in the commercial district. Pontiac Land outbid competitors in 2015 to purchase a long-term lease on the buildings, hailed as historic government sandstones.

The Education Building in Sydney reopened as a 192-room Capella Sydney, while work to restore the Lands Building is ongoing.

The Education Building reopened last year as a 192-room Capella Sydney, while work to restore and link the Lands Building to the hotel is ongoing. When completed in 2026, it will host larger-scale events and meetings, curated retailers, and signature F&B establishments.

Millenia Singapore, launched in the mid-90s, is a lodestar for Pontiac Land on the importance of visionary planning, particularly in developing mixed-use spaces on previously vacant reclaimed land, ahead of the nearby Marina Bay Sands. This integrated development comprises two luxury hotels – Ritz-Carlton and Conrad – two office towers and a retail mall. The five buildings were designed by award-winning architects, hallmarking Pontiac Land’s focus on design, art and quality in real estate development.

Be it green fields or restorations, Pontiac’s approach to projects hinges on keywords such as “long-term” and “foresighted thinking.”

And it’s content over concrete.

“For us, the key question is, what could we create in the location that would enhance the overall hospitality experience? We strive to build the right asset of high quality and design because we intend to hold the asset long term. We think about how the community around it will look like in the future, and position ourselves strategically to participate in its transformation,” Tsang explained.

Investor sentiments that a standalone hotel doesn’t cut it anymore are becoming louder. Speaking at HICAP recently, Minor International’s Group CEO Dillip Rajakarier said, “It doesn’t work because of the land cost. So. then you have to bring in a mixed-use concept – residences, timeshare, hotels, wellness, F&B, and so on.”

Tsang concurs that a standalone hotel is not viable in markets where cost of land, construction and operating a hotel is high. “So, a lot of people now are asking, what else could we put together to make the economics work better? We believe there’s a lot of opportunities in the Western market, which has not capitalized on mixed-use as much as Asia. Land in Singapore, for instance, is so scarce, so people are trying to find the optimal mix, whereas in the more established Western countries, they will just do retail or office.”

Owning versus managing

Pontiac Land’s assets under management across hotels, mixed-use, commercial and residential developments reportedly exceeds S$10 billion (US$7.6 billion).

The company owns seven hotels, while its wholly owned subsidiary Capella Hotel Group, which operates the eponymous Capella brand and a sister brand Patina, is growing rapidly through management deals.

An additional 10 Capella managed hotels will open in the next three years, joining the seven in operation today in Bangkok, Shanghai, Ubud, Hainan, Singapore, Hanoi and Sydney.

Millenia Singapore, launched in the mid-90s, is a lodestar for Pontiac Land.

The upcoming hotels are in diverse locations: Taipei, Kyoto and Macau in 2025; Riyadh (Diriyah) in 2026; Nanjing and Florence in 2027; and Yang Yang (South Korea), Shenzhen, Kenting and Elanan (NEOM) in 2028.

Patina, which had a slow start after launching amidst the pandemic in 2020, is beginning to find its footing. There’s only one in operation, Patina Maldives, owned by Pontiac Land, but next year will usher in Patina Osaka, followed by Patina Tianjin in 2026, both under HMAs.

“We want to provide the Capella team with the freedom and flexibility to grow when they see the right opportunity, not for the sake of opening a certain number of hotels in a certain number of cities by a certain time,” Tsang said.

“For a hotel to be a Capella, or even a Patina, it must have certain attributes that fit the brand. This is especially important for a younger brand that is establishing its presence.

“Probably the most important factor for the Capella team is that they are allowed to be involved in the design development – the selection of architects, designers, interiors, etc. – so that what comes out is a great product for Capella and the owner.

“They’ve been very successful in creating something that is different in each property, which adds to the strength of the brand and now the Patina brand.”

Branded residences foray

Capella Hotel Group is also foraying into branded residences, marking a significant evolution beyond hotel operations and one that adds another component to Pontiac Land’s future mixed-use developments.

Tsang sees the evolution to branded residences as natural. Hotels and residences have started to cross paths, he said, with hotels adopting a more residential feel, and residences offering more services and amenities.

“We’ve actually been blending many principles of hospitality into our residential and even our office developments,” he said. “This is becoming more pronounced in the market, particularly in Western countries like the U.S. where offices are incorporating hospitality-related elements to get people to return to work.

“As owner and operator, we’re lucky to see both sides. We hope to create something new in branded residences.”

Working with other operators

But with a flourishing hotel management subsidiary, does Pontiac Land see a future where all of its owned hotels will be managed by either Capella or Patina?

The world is entering uncharted territories. We will continue to grow, but at this point it’s likely to be a more moderate growth.

David Tsang

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Of the seven hotels it owns, two are managed by Ritz-Carlton, located in the Maldives and Singapore, and another two are Conrad hotels in Singapore. The remaining three are a Capella in Singapore and Sydney, and the Patina Maldives.

Tsang said the decision is based on brand fit and positioning. “The Conrad Centennial in Singapore is a good example. It has more than 500 rooms. It’s in the heart of the city. Does that speak to us as a Capella? Probably not.

“We enjoy working with different operators. We have a great relationship with Marriott and Hilton. They are well run, professional chains with great talent and effective distribution network. But we are also open to talking to other operators if the brand is appropriate for our next project.”

Strong sector

Tsang won't divulge financial figures, only saying that as an asset class, hotels continue to do “pretty well.”

“Most of the markets are above where they were in 2019 in overall occupancy, rate and RevPAR. So. It’s still a strong sector, with some good tailwinds. Tourism numbers are continuing to rise in the markets we’re in,” he said.

Luxury hotel investment remains strong, Tsang said. Replacement costs for new hotels, especially in developed markets, may be high due to wage inflation and rising material costs, pushing up transaction values for existing hotels. But at the same time, hotel performance has strengthened significantly, which helped sustain the high rates of luxury hotels.

“So, you have this duality: on one hand, high replacement costs, and on the other, strong performance of existing hotels. This dynamic attracts investors who see an upside in tourism, especially in the luxury sector where they can continue to achieve good returns despite the high absolute price per key.”

Moderate growth

But geopolitics, wars, a record year of elections – including the U.S. presidential election – create “a bit of a pause” for Pontiac Land, which thinks long-term with each project. Foresighted thinking is a lot harder in a sea of uncertainties.

“The world is entering uncharted territories,” Tsang said. “We will continue to grow, but at this point it’s likely to be a more moderate growth.”

What’s certain is Pontiac Land is “very comfortable” with real estate, although Tsang said the company does spend time looking at different asset classes.

“Sectors such as data centers, logistics and life sciences are three high growth areas,” he said. “Although there are opportunities, we haven’t found something that is super exciting for us, where we can compete effectively and deliver value. We’ll leave that to others who can do it better.”