Luxury five star Four Seasons Hotel Sydney is attracting interest from a range of investors from around the world, particularly with investors from South-east Asia, China, Korea and the Middle East.
Initial bids are not due for another six weeks for the landmark asset, which is being jointly marketed by Jones Lang LaSalle - Hotels & Hospitality Group, and boutique agency firm, McVay Real Estate.
Mr Craig Collins, CEO – Australasia, Jones Lang LaSalle - Hotels & Hospitality Group said, “We have received substantial enquiry from across the globe, however interest has been strongest from South-east Asia, China, Korea and the Middle East.
“It is very encouraging for the Australian hotel market that this campaign has caught the attention of not only traditional hotel investors but also a number of new groups that have not previously considered investing in this sector.”
Mr Sam McVay, managing partner, McVay Real Estate added, “The Four Seasons Hotel presents a unique offering in the Australian hotel market, due to its unrivalled Sydney Harbour location, its world-class Four Seasons branding and its seven day trading ability due to attracting both the business and leisure markets.”
This range of offshore interest is not unexpected, given that offshore entities accounted for 72% of the AU$1.44 billion worth of hotels sold in Australia last year.
Hong Kong investors were the top buyers of Australian hotels in 2012 accounting for 30% (circa AU$430 million) of total transaction volumes and beating out investors from Malaysia, Australia, Singapore and China.
Australian hotel sales to Hong Kong-based investors last year included Somerset Gordon Heights Melbourne (circa AU$11.7 million), Holiday Inn Brisbane (AU$48 million), The Observatory Hotel Sydney (circa AU$40 million) and the Shangri-La Hotel Sydney (AU$330 million).
Mr Collins notes, "Investors around the globe consider the Sydney hotel investment market as one of the most attractive and stable in the Asia Pacific Region, reinforced by ongoing supply constraints combined with increasing corporate demand and two upcoming economy-boosting developments - Baragaroo and the Sydney International Convention, Exhibition & Entertainment Centre.”
“The hotel has recently undergone a comprehensive $15 million renovation, adding to its appeal,” said Mr McVay.
“In 2012 refurbishment works included the conversion of existing lobby areas into a new restaurant and bar as well as upgrades to conferencing spaces, the Executive Club Lounge, swimming pool area and lifts.
“This follows an $18 million refurbishment to the Grand Ballroom and all of the guest rooms & suites over recent years. Together, these projects have greatly enhanced the sense of arrival and overall guest experience”.