Sydney’s Capitol Square Hotel sells

The Capitol Square Hotel in the centre of Sydney has sold for $26 million. 

Gus Moors, Karen Wales, Steam Leung and Joseph Lin of Colliers International sold the 94 room, mid-scale hotel, located at 3 Campbell Street in Haymarket, after a short, off-market campaign.

The three-star hotel was sold to MKH Properties on behalf of the Chandru Group, an entity associated with the renowned property investor, Mr Chandru Tolani.

Located in the heart of Haymarket, the property is ideally positioned to benefit from the new developments planned for the Central Station precinct. Despite the impacts of coronavirus, the hotel has continued to trade through this period, albeit at low occupancy levels.

“This sale represents the first hotel sale in Sydney post COVID and demonstrates continued appetite from investors to secure well located hotel assets in Sydney’s CBD,” said Gus Moors, Head of Hotels at Colliers International.

Karen Wales, National Director, Hotels at Colliers said, “Despite the challenges experienced by the hotel sector, both domestic and off-shore investors continue to display optimism surrounding the markets recovery.”

New Landmark have owned property for an extended period and were initially planning to renovate, but instead elected to test the market prior to committing to the refurbishment.

“As a long-term investor in the Sydney hotel market, we continue to have great confidence in the sector’s fundamentals. The Capitol Square hotel was superfluous to our existing portfolio, and rather than upgrade it to meet the standards of our other properties, we elected to trade out at a price that met our shareholders expectations,” said Mr Sanjay Kumar.

MKH previously owned the Metro on Pitt hotel, which was compulsory acquired as part of the Sydney Metro project. As experienced owners and operators of hotels, they had been seeking a replacement property in the tightly held Sydney market.

“Following a period of low transaction volumes, we are seeing more activity for the final quarter of 2020, as both sellers and buyers start to develop greater clarity about the road to recovery for the hotel sector,” Gus Moors said.


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Gus Moors

Head of Hotels | Australia

Sydney CBD

Having joined Colliers in early 2014, I have subsequently sold over $180 million of hotel assets across Victoria and NSW, including the largest hotel transaction in Victoria since 2008, being Bell City Preston for $143 million.

Prior to joining Colliers, I was Director of Asset Management for Tourism Asset Holdings Limited (TAHL), Australia's largest hotel owner and responsible for selling down this portfolio totalling over $1.5 billion.

Before TAHL, I was with Jones Lang LaSalle Hotels for 7 years, as Head of Asset Management and Chief Operating Officer for the Hotels group across Asia Pacific.

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Karen Wales

National Director, Transaction Services | Hotels Asia Pacific

Sydney CBD

Karen has over twenty years of experience in the hotel industry and holds a Masters of Business Administration (MBA) from the Australian Graduate School of Management. She brings with her a specialised knowledge of the Asia Pacific hotel investment market and an ability to drive fresh capital into Australia’s hotel markets. She has developed an exceptional network over the past two years across Asia and the Middle East and within government, in her capacity as Senior Investment Specialist Tourism Infrastructure at Austrade and her knowledge of new entrants into the growing Australian tourism sector is second to none.      

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Steam Leung

National Director | Asia Markets

Sydney CBD

I am currently the  National Director of Colliers International (Australia)  Asia Markets team in the Investment Services department, and have worked for Colliers International for over 28 years. With the rise of Asian investments into Australia, my focus is to facilitate the needs of domestic and international Asian clients. I have an extensive experience working with the Chinese community, and work closely with my colleagues to introduce new international clients / buyers for our listings. As a senior operator, my role at Colliers International focusses on the Sydney CBD and metro surrounding area, specifically targeting the  CBD South, Haymarket and Chinatown regions, where I work closely with my clients to achieve the best results for their properties. I have extremely strong networks with the local Chinese community and I assist and advise many Asian clients, investors and developers. I speak Cantonese and Mandarin fluently and frequently travel to Asia, such as Hong Kong, Macua, Shenzhen, Guangzhou, Shanghai and Beijing.

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Joseph Lin

National Director | Asia Markets

Sydney CBD

Joseph is the National Director, Asia Markets based in the Sydney CBD Investment Services team. He has a key focus of working with Asian Ultra-High-Net-Worth investors and institutional capital partners, having previously facilitated multiple high-profile domestic and cross-border transactions in and from Asia. 

Prior to joining Colliers International, Joseph was the Managing Director of CBRE Taiwan office where he led a team of 200 staffs across multiple business lines. Through his understanding of Asian clients' requirements in various stages of property ownership and his extensive management experiences across a range of expertise, Joseph has been the go-to-person for his Asian clients, connecting the right specialists to provide the best-in-class practices and expert advices and to deliver exceptional value for his clients.

With his unique skills in Architecture and Project Management, his exceptional experiences in international transactions and his language abilities in Mandarin, Cantonese and English, he has successfully facilitated the offshore and onshore Asian clients to expand and/or divest their real estate portfolio in Australia.

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