Sydney Hotels on the global radar.
Radisson Hotel & Suites Sydney, located at 72 Liverpool Street, has hit the market ahead of the pending completion of the International Convention Centre (ICC).
The four-and-a-half star, 102 room hotel is poised to capitalise on its location to the ICC which is accessed via a footbridge from the hotel.
The hotel’s profile of sub $50 million with over 100 rooms, combined with its vicinity to Chinatown and Darling Harbour, makes it an ideal acquisition for the high net worth individual market.
“We’re anticipating strong interest from high net worth individuals and owner operators, particularly offshore buyers such as the Chinese,” said selling agent Raymond Tran of Colliers International.
“The property offers a range of options to an incoming purchaser, including the ability to own and operate themselves or with their preferred operator. Furthermore, an incoming purchaser may look to sell down the individually strataed apartments to the retail investor market as a possible exit strategy” said Mr Gus Moors, National Director of Hotels at Colliers International.
The sale comes at a time when Chinese inbound travel to Australia is at historic highs, surpassing the one million arrivals mark in 2015.
“The effect of Sydney’s room undersupply has seen inbound travel agencies struggling to find hotel rooms to accommodate travellers in the Sydney CBD market,” said Mr Tran. “Subsequently, Chinese travel groups have been seen entering the hotel acquisition market in an effort to tap into this growing investment class”.
With the city already running at 88% occupancy and rates growing 7% in 2015, the opening of the International Convention Centre at the end of this year will enable city hotels to drive improved returns, as large international conferencing groups help to fill the city.
With the Radisson’s location and its full range of facilities, include indoor swimming pool, gymnasium, sauna, restaurant, bar and a suite of conference rooms on its mezzanine level, it is expected to be a highly attractive asset in the market.
Radisson Hotel & Suites is for sale by way of Expressions of Interest, closing on the 8th April 2016 Gus Moors and Raymond Tran of Colliers International are handling the sale.