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Asian investors size up Sydney CBD

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Nearly all five-star hotels in Sydney are now owned by Asian investors, according to global real estate firm JLL Hotels & Hospitality Group. 

The central business district saw transactions worth a whopping $1.9 billion take place in just the last 22 months, making the metropolis one of the world's hottest hubs of activity.

The sale of five impressive hotels drove the upward trend. These were, The Four Seasons, Sofitel, Sheraton on the Park, Westin and Heritage Retail, and The Hilton.

JLL's Australasia CEO Craig Collins and Senior Vice President of Investment Sales Peter Harper negotiated the latest deal.

Mr Collins said Sydney is now mentioned alongside London, New York, Tokyo and Paris when investors discuss lucrative hotel markets. 

"The Westin Sydney transaction reaffirms the strong demand for Australian CBD trophy hotel assets. As one of Sydney's most prestigious luxury hotels it was strongly contested by parties from Singapore, Hong Kong, China, US and Korea," he added. 

Being on the investors' radar means Sydney is having a "golden run", which is not showing any signs of slowing down. 

"Over many weeks of the year it is often difficult to book a five-star hotel room in Sydney between Monday and Thursday. There are no rooms available and the ripple effect this is having across three and four star assets is significant," he commented

The CEO also added that 2015 could be the year Australia breaks a new record. There is a possibility the country will become the strongest property development centre across Asia Pacific overtaking Singapore, Thailand and Malaysia.

Some investors are looking towards metropolitan and regional markets due to the the stiff competition in the CBD hotel market.

Date Published: 08 Jun 2015
Category: General News

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