Singaporean investment manager High Street Holdings (HSH) has acquired Peppers Kings Square in Perth for about $26 million, adding another Australian hotel to its global portfolio.
The CBD hotel was positioned to capture both corporate and leisure demand, with 120 rooms, a ground level restaurant, meeting facilities and a gym.
It opened in 2016 and was directly opposite Perth Arena at 621 Wellington Street.
The property will be rebranded as Rydges Kings Square.
“The freehold, 120-key hotel is a great value-add opportunity in one of the country’s hottest economies and presents multiple upside opportunities, including a repositioning, the reconfiguration of the hotel’s ground level and meeting spaces as well as the potential to create a multipurpose venue on the rooftop,” HSH partner Daniel Yip said.
“Given the supply and demand dynamics of the Perth hotel market, the hotel’s location and the size of rooms, we are thrilled to strengthen our relationship with EVENT Hospitality and Entertainment (EVT) and bring the Rydges brand back to Perth.”
CBRE Hotels negotiated the off-market sale.
CBRE’s Head of Capital Markets WA Aaron Desange said both corporate and leisure travel was recovering throughout the Asia Pacific region, and Perth hotels remained exceptionally well placed to benefit.
“Perth CBD RevPAR continues to improve and CBRE Hotels forecast this growth will climb further into 2023,” Desange said.
“The West Australian resources sector has multiple large-scale construction projects about to commence which will have a positive downstream impact on the rest of the economy and particularly the lodging market.”
Recent hotel deals include High Street Holdings’ acquisition of the Rydges North Sydney hotel from Event Hospitality & Entertainment for $75 million last month.