Investors circle Four Seasons
A range of buyers are circling the $300 million Four Seasons Hotel in George Street, as the hotel sector is tipped for growth in room rates and occupancy.
The selling agents from Jones Lang LaSalle's hotels & hospitality group and McVay Real Estate said investors considered the Sydney hotel market as one of the most attractive and stable in the Asia Pacific region, reinforced by supply constraints and rising corporate demand.
The development of the Barangaroo and the Sydney International Convention, Exhibition and Entertainment Precinct will also boost the attraction from visitors wanting higher-quality accommodation.
Jones Lang LaSalle's Craig Collins said there had been substantial interest for the hotel, including inquiries from Asia and the Middle East.
"This range of offshore interest is not unexpected, given that offshore entities accounted for 72 per cent of the $1.44 billion worth of hotels sold in Australia last year," he said.
The latest Hotels.com's Hotel Price Index, released on Tuesday, said Australian hotel prices rose by 4 per cent in 2012 to an average $171 a night, above the average global rise of 3 per cent.
Hotels.com said it was the third consecutive year of positive growth since the global financial crisis, although the 2012 increase is notably less than the 11 per cent registered in 2010 and 8 per cent in 2011.
The managing director, Asia Pacific, for Hotels.com, Johan Svanstrom, said the mining boom continued to drive up Australia's hotel prices for travellers from around the world, particularly in Western Australia.