Canberra’s Aria Hotel has been sold to Sydney fund manager Aligned FM for $35 million.
The sale follows the recent acquisition by Hong Kong-based Ovolo Hotels of the rights to manage the 68-room Hotel Hotel in Canberra.
CBRE Hotels’ Andrew Jackson negotiated the sale of the Aria Hotel to Aligned FM, which represents the group’s first acquisition in Canberra. Aligned FM also owns assets in Sydney, Melbourne, Perth, Brisbane, as well as several regional across NSW.
“The acquisition of the Aria Canberra provides further diversification to our existing portfolio, access to a market with strong trading performance and the ownership of a well built and maintained property," Glen Boultwood, chief executive of Aligned FM said.
He indicated the property will be rebranded to an Adina from 1 March 2018.
Located at 45 Dooring Street, Dickson, Aria Hotel is a medium-rise serviced apartment complex comprising 128 large apartment-style hotel guest rooms, café and onsite parking for 107 vehicles.
Positioned on a 2,691 square metre landholding, the hotel was sold with vacant possession being previously owned and operated by local operator, Capital Hotel Group.
The sale comes amid strong activity in Canberra’s hotel market, with CBRE Research highlighting its nation leading performance.
Related reading: Doma Lodges Plans for $160m Mixed-Use Development in Canberra
“The surprising stand out performer for the 2017 has been the Canberra hotel market, which has managed to absorb the wave of new supply it experienced over the last couple of years,” CBRE research manager Ben Martin-Henry said.
“Stable supply and strong increases in tourism in 2017 gave operators the confidence to raise room rates without fear of occupancy falls.”
Boultwood said that the company has been selectively acquiring hotels and serviced apartment complexes around Australia to create a diversified portfolio for its investors.
“Over the past 18 months Aligned FM has exchanged contracts on four properties worth around $100 million including the Aria Canberra, Quest Nowra, Quest Penrith and one other. Upon completion of these assets the portfolio will grow from 940 rooms to 1,261 rooms,” he said.