The 396-room Hilton Melbourne South Wharf has been sold to Singaporean Real Estate Group UOL Group by JLL for $230 million.
With the transaction complete, UOL will go on to rebrand the Hilton so it falls in with the company's other hotel holdings - the Pan Pacific Melbourne.
"The acquisition is part of the Group’s plans to expand its hotel property portfolio and hotel management businesses in the Oceania region," UOL stated.
"The property will allow the group to have a bigger presence in the city of Melbourne in addition to its Parkroyal Melbourne Airport.
"The acquisition may also allow the group the opportunity to enhance the collective operating efficiency of the group’s current hotels in Australia, through economies of scale and greater brand awareness of “Pan Pacific” and Parkroyal."According to The Australian Financial Review, UOL Group owns and operates a portfolio of 32 hotels, resorts and serviced suites in Asia, Oceania and North America under the Pan Pacific and Parkroyal brands.
The AFR said the acquisition of the Hilton Melbourne South Wharf takes UOL's Australian hotel investment portfolio to five alongside the 486-room Pan Pacific Perth and Parkroyals in Darling Harbour, Parramatta and Melbourne Airport.
UOL's Parkroyal Parramatta, which recently underwent a $25 million extension to create the biggest hotel in Parramatta with 286 rooms.
The 30,688 square metre hotel was marketed by Craig Collins and Mark Durran of JLL Hotels & Hospitality. It was put up for sale in late 2015 with a 99-year leasehold running until 2108 with price expectations above $250 million.
The AFR said the acquisition is conditional on a number of factors including UOL Group gaining Foreign Investment Review Board approval and being able to acquire the leaseholds of at least eight of the 12 rooms, which have unrelated room owners (from Host Hotels and Plenary) under sale-and-licence back arrangements.