Contracts have exchanged for the sale of The
Contracts have exchanged for the sale of The
The hotel attracted strong interest with over 62 enquiries registered. Ten offers to buy the asset were received and keen bidding ensued said Mr Durran. The sale price achieved for this hotel and other recent sales, such as The ANA Sydney and The Westin Hotel Sydney, reflect investor confidence in Sydney`s improving hotel and tourism market fundamentals.
The Hotel opened in early 1999 and was purpose designed as an Ibis Hotel. It is one of the most profitable hotels in Sydney and has consistently outperformed market averages.
Located near the corner of Goulburn and Pitt Streets, the 17 storey hotel has 166 rooms and a 100 seat breakfast room. The two stratums sold are subject to a 125 year ground lease.
The Hotel is currently operated by Accor Asia Pacific.
The room supply outlook for Sydney is strongly positive, as the trend to residential conversions continues to reduce the total room stock of the city. Since October 2000, total room supply has contracted by 2,072 rooms. A further 961 rooms are expected to close by December 2004 giving a total of 3,033 rooms or 16 hotels being converted or redeveloped to residential units. Most of this redevelopment has occurred in the 3-4 star sector, he added.
Mr Durran said Buyers are positioning themselves for the anticipated strong future growth prospects as market recovery continues to gather pace over the next year.
This investor confidence augurs well for the sale of Australia`s premier hotel asset the 5 star Park Hyatt Sydney which is currently being marketed globally by Jones Lang LaSalle Hotels.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
