Salter Brothers Bag Adelaide Sofitel for $154m

The Salter Brothers splashed $154 million on Adelaide’s first five-star hotel in 30 years following the Palumbo family’s exit. 

The hotel in Adelaide’s CBD, at 108 Currie Street, comprises 251 rooms in the lower half of a 32-storey tower, with eight levels of residential apartments above.

CBRE Hotels and Savills handled the sale on behalf of developers Palumbo.

CBRE Hotels managing director Michael Simpson said selling the Sofitel set a benchmark for the luxury hotel market in Adelaide and chalked up a record for the CBD. 

“We have also moved in on Waldorf Astoria Sydney, Novotel and Ibis Melbourne Central and the Sofitel Brisbane, which together exceed $1.2 billion,” Simpson said. 

“The sale of the Sofitel Adelaide represents Adelaide’s most significant single asset hotel transaction. The developers, who were the vendors in this transaction, literally poured their heart and soul into delivering what is arguably the best internationally branded luxury hotel in Adelaide.”

Savills Director Nick Lower said there was confidence in not only Adelaide’s hotel market but also its hospitality industry.

▲ Inside the Luminesque apartments that occupy the top eight levels.

“The high price per key showcases the value placed on the property, emphasising its distinction in the market and the confidence now being seen in the Adelaide market,” Lower said.

The opening of the Sofitel in 2021 was the first high-end branded hotel since the Intercontinental opened in Adelaide 30 years ago.

Accor Group operates the hotel with an indoor swimming pool, French restaurant Garcon Bleu, health and wellness offerings, an executive club lounge and briefly dived into the ‘workspitality’ space by adding meeting rooms for commercial use. 

Salter Brothers managing director Paul Salter said the luxury hotel market was one of Australia’s most robust markets.

“We are extremely pleased to acquire this quality institutional luxury hotel asset,” Salter said. 

The Salter Brothers picked up the asset after Palumbo reportedly received unsolicited offers. The Urban Developer understands there were price expectations of about $160 million. 

It represents a move away from the Salter Brothers Sydney heartland and a South Australian expansion.