Royal Group seeks new operator for Casa Mett after Sunset exit

By Marcus Bennett

Royal Group of Companies will seek a new operator for the 171-room Casa Mett hotel, with opening still targeted for the second quarter of 2027. The Singapore-based property development and investment group owns the site at 21 Cuscaden Road.

Sunset Hospitality Group had been slated to manage the hotel. After rumors circulated, both parties confirmed this week that they had agreed to discontinue the project under their current arrangement. The replacement operator has not been named.

Why did Royal Group and Sunset Hospitality end the project?

Rushdee Hosany, Royal Group’s head of hospitality, said: “We have indeed agreed with SHG that it would be in the best interest of the development to part ways and not proceed with the project under the current arrangement.” He described the decision as the result of joint discussions and mutual agreement.

Jaime Buxo Clos, CEO of SHG’s hotels and resorts division, said the decision was “unrelated to the regional situation.” He said both parties “mutually agreed to step back” from Singapore as their respective visions for the concept evolved.

Royal Group said its relationship with Dubai-headquartered SHG remains excellent. It welcomed opportunities to explore other avenues for collaboration on future projects. SHG likewise called the decision joint and reached in a spirit of partnership.

The public explanation offers few testable details. Neither side disclosed separation terms, operator fees, projected room rates, occupancy assumptions or a revised development budget. Clos’s description of evolving visions does not identify what changed in the operating model or whether either side bore added costs.

Is the Middle East conflict connected to the decision?

Royal Group and SHG both denied any connection. The conflict began in late February when the United States and Israel struck Iran. Hosany said the regional situation understandably attracts considerable attention and may prompt questions, while Royal Group’s priorities remain specific to the project and its best interests.

Clos separately called the withdrawal unrelated to regional events. Neither explanation includes financing, insurance or contractor data that would allow readers to test that assurance. The public record establishes the parties’ position, not an independently verifiable cause.

What changes at 21 Cuscaden Road?

Casa Mett was initially slated to open in early 2027. Work on the building’s structure will finish by the end of November. The revised plan raises the room count from 165 to 171, with the remaining details unchanged.

• A blade-shaped, freehold site at 21 Cuscaden Road covers 12,132 square feet.
• The 13-storey building will contain 171 rooms on nine levels.
• SCDA Architects designed the building. Three F&B concepts will occupy the first two levels and the roof.
• The eighth-floor sky terrace will incorporate fitness and wellness facilities.

Royal Group previously positioned Casa Mett to fill a niche for an upmarket, trendy lifestyle hotel in the area. Without named menus, suppliers, prices or staffing plans, readers cannot assess the sourcing model, menu mix, pricing strategy or margin potential of those three concepts.

What has Royal Group already spent on the site?

Royal Group bought the seven-storey Ming Arcade commercial complex in a collective sale in December 2022. The price was S$172 million, or S$3,125 per square foot per plot ratio. The company then rezoned the property from commercial to hotel use, triggering a land-betterment charge exceeding S$25 million.

The acquisition and rezoning outlays are already committed, but Royal Group has not disclosed the overall construction budget, projected room revenue or expected return on the 171-room inventory. The announcement also does not explain whether the larger room count changes food-and-beverage space or labor needs.

What does Sunset Hospitality retain in Singapore?

SHG is a Dubai-headquartered multinational lifestyle hospitality group. Its portfolio spans hotels and resorts, restaurants, beach clubs, nightclubs and fitness centres. Casa Mett would have been its second Singapore hotel under management, following the 84-key Mett Singapore on the former Hotel Fort Canning site.

The group also operates the Chinese restaurant Mott 32 at Marina Bay Sands. It runs Sushisamba at Capital Tower on Robinson Road, where the concept combines Japanese, Brazilian and Peruvian cuisines and cultures. The Casa Mett withdrawal removes a planned expansion, not SHG’s existing Singapore presence.

Clos said SHG will continue growing its lifestyle hospitality portfolio around the world while it explores future opportunities in Singapore and across the region. Royal Group, meanwhile, owns Sofitel Singapore Sentosa Resort & Spa and Raffles Sentosa Singapore.

A replacement operator announcement is the next verifiable milestone. Until Royal Group names one, the second-quarter 2027 opening remains a target rather than a firm commitment.