Qatar Airways spending c$140m on Sydney’s Primus Hotel

The 172-suite Primus Hotel at 339 Pitt Street, Sydney, is selling for a speculated c$140m.

Postscript: this deal didn’t proceed. It later sold for $132m. Read that story here.

Qatar Airways is reportedly in negotiations to buy Sydney’s Primus Hotel for c$140 million.

The 172-suite inn at 339 Pitt Street was offered in September by Greenland Australia which recently completed it as part of a larger project also with residential and retail.

The company told The Australian the guesthouse received “strong interest from the market”, even though the speculated price is less than $170m estimate attached when listed.

Several short-listed parties are undertaking due diligence, the vendor, being represented by JLL Hotel and Hospitality’s Mark Durran, added.

Two years ago, Qatar settled on a $135m deal with Jeff Xu worth $135m for the Sheraton Melbourne at 27 Little Collins St – which replaced the Naval & Military Club site.

CBD hotel deals this year

In September, Deague Group sold the near-new Fantauzzo Art Series Hotel in Brisbane’s CBD for $75m to billionaire businessman and philanthropist Ghassan Aboud (story continues below).

In Melbourne, two months earlier, Pelligra Group spent c$40m on the Rydges on Swanston guesthouse at 701 Swanston St, Carlton, a few hundred metres from the top of town.

Also that month Thailand’s Savetsomphob family paid Caydon $108m for the newly completed, 145-key Vibe Hotel Melbourne at 1-5 Queen St.

That deal came three months after it outlaid the same price on Sydney’s Vibe Darling Harbour.

In June Daisho settled on the $220m purchase of Collins Arch’s hotel component, not far away in Collins St.

The 10-storey Ibis Little Bourke St, also in Melbourne’s CBD, traded in April to Sydney’s Yeh Hotel Group and is that investor’s first Victorian asset.

Also this year, Voco announced plans for a 171-suite inn which would be occupied by IGH, as part of a mixed use complex at 10-16 Dorcas St, South Melbourne.

However, a permitted plan for a hotel at the north west corner of Spencer and Jeffcott streets was shelved, when the owners sold the sites it was earmarked for to three separate buyers.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco