The Urban Redevelopment Authority (URA) said on Wednesday it did not receive any bids for the hotel site at Race Course Road/Bukit Timah Road when the tender closed at noon.
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It said it will announce its plans for the site after a decision has been made. URA launched the hotel site for sale by public tender in February this year.
It was one of the two hotel sites to be sold through the confirmed list under the Government Land Sales Programme for the first half of this year.
URA said the site is located above the Little India MRT station and has an area of about 0.9 hectare and a maximum permissible gross floor area of 31,440 square metres.
Analysts Channel NewsAsia spoke to seemed slightly surprised by the tender results, given the still-booming hotel property segment.
But they said it is unlikely for the robust hotel industry to see a 180-degree turnaround so quickly - especially in times of strong tourist arrivals.
Property firm Cushman and Wakefield noted that it is still seeing good demand for the hotels it is handling in the financial district.
So consultants said the reasons for the no-show could lie with the site itself.
Savills said the site is on the outskirts of the city, and close to other three- and two-star hotels.
This makes it almost impossible for a developer to build a five-star property there.
And with construction costs so high, developers would find it hard to strike a good deal.
Meanwhile, Chesterton suggested that interest in the site could have been affected by the large crowds in the area, especially over the weekends.
Property consultants also said that it will be at least two years before a hotel can be up and running - which makes it impossible to cash in on upcoming events like the Formula 1 race later this year and the upcoming opening of the integrated resorts. - CNA/ms
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