Singaporean investment firm High Street Holdings has bought the Rydges North Sydney hotel from Event Hospitality & Entertainment for $75 million, with plans for further hotel acquisitions in Australia.
Located at 54 McLaren Street, the 167-key hotel was situated on a 2,549 sqm freehold site in one of Australia’s largest corporate catchments.
The property was located just off Miller Street – next to the upcoming Victoria Cross Metro Station, which will connect North Sydney with the Sydney CBD in about three minutes.
The buyer also intends to refurbish the hotel post-settlement.
The High Street Holdings deal was negotiated on behalf of a Singapore family office, which made its first Australian tourism acquisition with the purchase of the Kennigo Hotel Brisbane last year.
High Street Holdings partner David Marriott said the family office was actively pursuing further Australian investment opportunities as part of the continued diversification of its global portfolio.
“The transparency of the Australian market and the strength of domestic demand, which accounts for circa 80% of hotel visitation numbers, continues to be a key attraction in light of the volatility in international tourism in recent years,” Marriott said.
CBRE Hotels’ National Director Wayne Bunz, who negotiated the sale with the CBRE Hotels team, said the sale highlighted the recent rebound in demand from Asian-based capital reinvesting into Australian hospitality and accommodation assets.
“Sydney is a truly global city, renowned as a global tier one investment destination with hotel assets highly sought after but tightly held,” Bunz said.
“There is circa $8.4 billion of large-sale development projects either under construction or in the planning stages in the North Sydney precinct, including the new 60,000 sqm Victoria Cross office project adjoining the hotel,” CBRE Hotels’ Managing Director Michael Simpson said.
“Combined with the 61,000 sqm 1 Denison Street and 42,000 sqm 100 Mount Street office towers, this significant influx of commercial projects and limited hotel supply bodes well for the local accommodation market.”
Recent hotel deals include Singaporean group Well Smart’s sale of the ibis Budget Melbourne CBD hotel to Capit.el Group in February.
Last November, Well Smart also sold the Mantra Terrace Hotel in Brisbane for a speculated c$16 million.
Hotel deals reached about $800 million in Australia during the first quarter of 2022, up 291% year-on-year, according to Real Capital Analytics.
For the year to March, Australian hotel transactions rose by 119% to $2.9 billion.