The view from the Four Seasons hotel, Sydney Photo: Sarah Ackerman
Sydney has become a hotel investment hotspot, with sales nearing $2 billion in the first half of 2015.
Transactions totalled 2.1 billion Australian dollars in 2013, a figure that grew to 2.7 billion in 2014, but the first five months of 2015 have already reached the 1.9 billion mark, setting the sector on course for a record-breaking year.
“A new record of sales volume for Australian hotels could absolutely be broken in 2015, potentially making Australia the strongest hotel investment destination across Asia Pacific, ahead of the traditionally sought markets of Singapore, Thailand and Malaysia,” says Craig Collins , Chief Executive Officer – Australasia, and Peter Harper, Senior Vice President – Investment Sales of JLL.
A number of high profile deals have helped to fuel the growth, from the sale of the 531-room Four Seasons to Korea’s Mirae to the sale of the 436-room Sofitel Sydney to Singapore’s Frasers Centrepoint.
These deals have been finalised by JLL Hotels & Hospitality Group, which highlights the strong demand for assets within the Australian city’s central business district.
“Every large five-star hotel in Sydney is now owned by a foreign group, mainly from Asia. Asian investors love Australian Hotels,” adds Collins.
“When meeting hotel investors around the world, buyers now include Sydney in the discussion of key global hotel markets they wish to invest in along with London, New York, Tokyo and Paris.”