Two Sydney hotels have changed hands for $109 million as the level of investor activity in the sector stays high.
The Courtyard by Marriott Sydney, North Ryde and Novotel Sydney Paramatta hotels are being acquired by Silversea Investment from CapitaLand Ascott Trust (CLAS) in deals expected to be completed in the first and third quarters of next year respectively.
The Novotel Sydney Parramatta offers 194 rooms, a 350-seat restaurant and lounge, 11 multi-purpose meetings rooms and an event space.
The Courtyard by Marriott Sydney-North Ryde offers 164 rooms, a 100-seat restaurant and bar and seven event rooms.
CBRE Hotels’ Michael Simpson and Vasso Zographou negotiated the transactions at a price 5 per cent above Singapore-based CLAS’s book value.
In statement to the Singapore Stock Exchange, CapitaLand Ascott Trust’s Serena Teo said the divestment of the properties was part of its active portfolio reconstitution strategy.
Part of the divestment proceeds will be used to partially finance CLAS’s acquisition of three prime lodging assets—in London, Dublin and Jakarta.
“Australia remains a key market for CLAS. We continue to see strong demand from corporate and leisure guests for our serviced residences and hotels in Australia, boosted by large scale sporting events,” Teo said.
“Post-divestment, our remaining seven serviced residences and hotels under management contracts will enable us to capture the travel demand while our five serviced residences under master leases will continue to provide us with stable income.”
Silversea also owns the Holiday Inn Sydney Airport hotel at Mascot, The Royal Pacific Hotel at Lane Cove on Sydney’s North Shore and the Mercure Sydney Parramatta.
CBRE’s Simpson said the purchase of the CLAS properties represented astute buying, with Novotel Sydney Parramatta positioned to benefit from the increasing importance of the Parramatta CBD as well as the unprecedented growth in Greater Western Sydney.
“Similarly, the Courtyard by Marriott North Ryde will continue to service the ever-expanding Macquarie Business Park which provides a decentralised corporate solution to current work trends.”
Zographou said both would benefit from additions to Sydney’s transport infrastructure such as the Metro, light rail and motorways, “which will enhance connectivity to the broader Sydney area”.
“The 2026 opening of the Western Sydney International Airport will provide a further source of demand.”
