The Rydges hotel brand is set to return to the Perth CBD after Singapore company High Street Holdings bought the Peppers Kings Square site for $26 million.
Peppers will be rebadged as Rydges Kings Square.
HSH, a real estate investment and asset management company, bought the hotel at 621 Wellington Avenue—its third hotel buy in the past 12 months after the purchase of Kennigo Hotel Brisbane and the Rydges North Sydney.
CBRE Hotels negotiated the off-market sale of the Perth hotel’s freehold.
The hotel has 120 large guest rooms, meeting rooms, a gym and a restaurant on the ground floor.
HSH will run the 120-key hotel with EVENT Hospitality and Entertainment.
CBRE WA capital markets head Aaron Desange said the increasing appetite for regional tourism, Perth’s location and the potential positive effects of several resource sector projects about to start made the acquisition a good opportunity.
“Perth CBD RevPAR [revenue per available room] continues to improve and CBRE Hotels forecast this growth will climb further into 2023,” Desange said.
“The West Australian resources sector has multiple large-scale construction projects about to commence, which will have a positive downstream impact on the rest of the economy and particularly the lodging market.”
The hotel is opposite the Perth Arena. HSH partner Daniel Yip also hinted at a potential redesign of the amenities onsite.
“The freehold hotel is a great value-add opportunity in one of the country’s hottest economies and presents multiple upside opportunities, including a repositioning, the reconfiguration of the hotel’s ground level and meeting spaces as well as the potential to create a multipurpose venue on the rooftop,” Yip said.
The former Rydges Hotel in Perth was at 815 Hay Street. Peppers Kings Square was opened in November 2016.
The Rydges Sydney Airport Hotel was listed last year with an expected price of over $270 million.
