Hotel tycoon Jerry Schwartz has placed his 297 room Sydney hotel, the Four Points by Sheraton Central Park at Chippendale, on the market.
The Sydney hotel, worth around $180 million, will be offloaded following a difficult year for the sector.
Prior to the pandemic, the 4-star hotel achieved an average occupancy of 85 per cent over 2019.
“I am already well-represented with hotels in the southern end of the Sydney CBD and Darling Harbour,” Schwartz said in a statement.
“And I thought it was time to take advantage of market conditions and sell when there is such strong demand.”
In 2017, Schwartz sealed a deal with Melbourne-based Liberman family-backed funds manager, Impact Investment Group, to develop the Four Points by Sheraton hotel.
Schwartz secured the Foster + Partners-designed hotel for $156 million.
Schwartz said he saw the current period as “an ideal time to sell” the Sydney hotel because “forecasts suggest Sydney will re-bound strongly in 2021 and beyond”.
“While there is additional hotel inventory coming into the Sydney market during 2021-22, much of it is at the top end of the market, where the most likely growth in demand will be in the 4-star market.”
The Hotel, which opened in August 2018, forms part of the Central Park mixed-use project, developed by Frasers Developments and Sekisui House located adjacent to the University of Technology Sydney campus.
Australia’s largest private owner of hotels, the Schwartz Family Company has 15 hotels in its portfolio, comprising the likes of the Sofitel Sydney Darling Harbour, to the Fairmont Resort Blue Mountains, The Victoria Hotel in Melbourne, Hilton Surfers Paradise and Paradise Resort on the Gold Coast.
The Sydney hotel sale is being managed by JLL Hotels & Hospitality’s Mark Durran who says development approvals obtained allows for an additional 11 guest rooms, which would take the room count up to 308 rooms.
“Another approval has been granted to roof over and enclose a large outdoor terrace area to create further flexible multi-purpose all-year-round function space,” Durran said.
“Other approvals are also in place for the addition of a distillery on the ground level adjoining the restaurant and bar.”
In one of the largest hotel portfolio offers in recent times, Mirvac and NRMA are sorting through bids for their substantial Travelodge portfolio, comprising 11 hotels, which hit the block last month eyeing a $550 million-plus sale.
McVay Real Estate and Credit Suisse are managing the portfolio's sales campaign.