Hotel sells in the midst of a global pandemic
Following a long history with our client, Ausbao / Shokai, a subsidiary of Beijing Capital Development Holding Group Co Ltd, Colliers took the Radisson hotel to market in late March 2020, just as the COVID-19 pandemic was beginning.
This was a mixed-use residential, hotel and retail tower that was built in the late 1990’s by Ausbao. We were asked to sell the remaining 76 serviced apartments which they owned in one-line, along with the leasehold interest in a further 24 individually owned apartments.
Marketing a hotel at the start of the global pandemic, where uncertainty was rife, posed numerous challenges.
To counter these obstacles, the Colliers Hotels team paired up with the Asian Markets team to widen the investor profile, given the property’s prominent Haymarket location.
Further to this, the marketing campaign highlighted the alternate-use opportunities offered by the property, to garner the interest of a broader investor market that included build-to-rent, co-living and student accommodation buyer groups.
Despite the challenges of the pandemic, the difficulty of conducting inspections and the fact that the hotel had been closed down, the combined efforts of the Colliers Hotel team and Asian Capital markets team delivered outstanding exposure, with more than 330 inquiries and nearly 50 groups signing Confidentiality Agreements.
At the close of the Expression of Interest, we received twelve bids from a wide variety of groups, totalling over $400 million in enquiry. The ultimate purchaser was an offshore group with previous knowledge of the asset, who bought the property with the intention of retaining it as a re-positioned hotel offering.
“Colliers demonstrated patience and persistence in selling this property for Ausbao, during a challenging period. The exposure they were able to generate was impressive and ultimately resulted in us achieving a positive sale outcome.”
Regional Director, Australia
Capital Holding (International) Ltd. | SHOKAI GROUP