The Rydges Sydney Airport hotel has been listed for sale, with the listing tipped to be of the year’s largest single asset transactions.
Since opening eight years ago, the hotel has benefited from extensive capital expenditure works and now boasts 318 guest rooms, three food and beverage venues – including a top floor bar – 11 conference and meeting facilities, and both a business and fitness centre.
The commencement of the global roll out of COVID-19 vaccines and consequent indications that international travel will be recommencing this year have prompted the owners to launch the sale campaign following the receipt of several unsolicited buyer approaches in recent times.
The campaign is timed to capitalise on the new trans-Tasman travel bubble, which started with New Zealand this week.
JLL Hotels & Hospitality Groups’ Mark Durran & CBRE Hotels’ Wayne Bunz have been appointed as the exclusive marketing agents for the property,
Inside a room at the Rydges Sydney Airport hotel
JLL hotel and hospitality group’s Mark Durran and CBRE hotels national director Wayne Bunz have been appointed as the exclusive marketing agents for the property.
“On-airport hotels are expected to be an immediate beneficiary of the rebound in international travel and this particular property will continue to command a significant rate premium over competing hotel located farther afield,” Mr Bunz said.
“The asset has had an enviable historical track record for superior trading performance, with occupancies significantly higher than the Sydney average and most CBD hotels.
“This is the only hotel at an airport terminal in Sydney and we expect it to command a premium price.”
Mr Durran said the hotel vacant possession can be obtained, providing owner-operators and alternate management companies with substantial brand exposure.
“Prime investment grade hotel assets in strategic locations such as the Sydney Airport precinct, particularly those offering vacant possession, are highly sought after and prices remain solid,” he said.
Mr Durran highlighted the recent sale of Sydney’s Primus Hotel, which traded at approximately $132,000,000 ($767,000 per room) – a historically low investment yield.
The Rydges Sydney Airport Hotel is being offered for sale via an Expression of Interest campaign ending 31 May, 2021.