Singapore-listed City Developments Limited (CDL) has bought the 5-star Sofitel Brisbane Central hotel in Brisbane from Brookfield Asset Management for $177.7 million.
The 30-storey hotel comprised 416 rooms and was home to the city’s largest hotel event and meeting facility with nine meeting and conference rooms that can accommodate up to 1,100 people.
Located in the heart of Brisbane’s CBD, the luxury hotel was near the Central Station, Queen Street Mall, Eagle Street Pier beside the Brisbane River, South Bank Parklands and the Convention Centre.
The deal marks CDL’s third hotel in Australia, alongside the Mercure Perth and Ibis Perth.
CDL Executive Chairman Kwek Leng Beng said the deal marked the group’s entry into Brisbane’s hospitality sector.
“Brisbane is amongst the key hospitality markets in Australia that have enjoyed the strongest RevPAR recovery in 2022, significantly exceeding pre-pandemic levels,” he said.
“Brisbane’s pipeline of over A$20 billion in infrastructure projects will further enhance the city’s position as a world-class sporting, tourism and business events destination.
“With Brisbane being the host city for the 2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029, the acquisition presents an attractive opportunity for the Group to enlarge our presence in Australia and enhance our recurring income stream. The Group remains focused on optimising our hospitality portfolio.”
The deal is expected to settle in the second half of 2023 and Accor Group will continue to manage the hotel under its Sofitel brand.
CDL said the acquisition of Sofitel Brisbane Central aligned with its diversification strategy, with Australia being one of its key markets.
The group has several development projects, including Fitzroy Fitzroy and The Marker in Melbourne, and Brickworks Park and Treetops at Kenmore in Brisbane.
In 2018, it completed Ivy and Eve, an iconic 472-unit luxury residential project in Brisbane.