Investors circle Four Seasons
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.
Frequently Asked Questions about this Article…
A range of buyers are circling the Four Seasons Hotel on George Street, which is being marketed at about $300 million. Selling agents from Jones Lang LaSalle’s hotels & hospitality group and McVay Real Estate say there has been substantial investor interest in the property.
Investors view the Sydney hotel market as one of the most attractive and stable in the Asia‑Pacific region due to supply constraints, rising corporate demand, and major developments that are expected to boost visitor demand for higher‑quality accommodation.
The development of Barangaroo and the Sydney International Convention, Exhibition and Entertainment Precinct are cited as projects that will attract more visitors seeking higher‑quality accommodation, which should support stronger room rates and occupancy.
Jones Lang LaSalle’s Craig Collins said there has been substantial interest in Sydney’s hotel market, including inquiries from investors in Asia and the Middle East. The article also notes strong offshore participation in recent hotel transactions.
According to the article, offshore entities accounted for 72% of the $1.44 billion worth of hotels sold in Australia in the past year.
Hotels.com’s Hotel Price Index showed Australian hotel prices rose by 4% in 2012 to an average of $171 a night, which was above the global average increase of 3% and marked the third consecutive year of positive growth since the global financial crisis.
Yes. Johan Svanstrom, managing director for Hotels.com Asia Pacific, said the mining boom is continuing to push up Australia’s hotel prices for travellers, particularly in Western Australia.
The article suggests the hotel sector is tipped for growth in room rates and occupancy in Sydney due to supply constraints, rising corporate demand and major precinct developments, and that strong offshore buyer interest is supporting transaction activity—factors everyday investors may want to monitor when considering exposure to hotel assets.
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