The recently refurbished Hilton Sydney has sold for c$530 million, a record price for an Australian hotel.
Baring Private Equity Asia is the buyer; it is the Hong Kong based global private equity firm’s latest local investment.
The seller was Singapore’s Bright Ruby, which is exiting the Australian commercial property market.
The deal reflects a windfall for the group which paid Hilton $442m for the 587-suite, 5-star hotel with Luke Mangan’s Glass restaurant on the second floor, in 2015.
In late 2020, BPEA, in partnership with Futuro Capital, acquired a Bourke Street Mall, Melbourne, office, including the Tivoli Arcade, for a total of c$210m.
Another hotel sale
JLL Hotel & Hospitality’s Mark Durran marketed the Hilton Sydney, which was developed in 1974 at 488 George Street and revamped at a cost of c$25m two years ago (story continues below).
The deal comes seven months since KKR in partnership with Futuro and Marprop paid Frasers $315m for the nearby Sofitel Sydney Wentworth – a transaction which priced every room at c$721,000; that asset is now set for a refurbishment.
Not long earlier, Fridcorp and Piety snapped up the InterContinental Double Bay, in the city’s east, for c$180m, which valued every suite at c$1.286m.
Last week we reported Shakespeare Property Group was outlaying $114m for the Gold Coast’s Palazzo Versace.
The previous record for an Australian hotel was set in 2014 when Sydney’s Sheraton on the Park traded for $463m to Sunshine Insurance Group Corporation.
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