Unprecedented levels of interest in Sydney’s hotel sector has underpinned the $19 million sale of the Westend Hotel in the CBD.
CBRE Hotels’ Andrew Jackson and Rob Cross negotiated the sale via an Expressions of Interest campaign that attracted more than 300 enquiries. Mr Jackson said buyer interest in the hotel was phenomenal.
“We received a staggering 300-plus enquiries and took over 45 groups through the hotel over the course of the campaign, resulting in 13 offers to purchase being received,” Mr Jackson said. “
The shortlist comprised largely of offshore groups from Mainland China and Malaysia, but ultimately sold to a domestic group who plans to refurbish and reposition the property as a limited service hotel offering to take advantage of the strong Sydney hotel market fundamentals.
Located at 412 Pitt Street in Sydney’s southern CBD district, the property comprises 86 rooms over 13 levels. Westend Hotel currently operates as a 359-bed backpacker hotel under the Nomads brand. Mr Jackson said the strong level of buyer interest was evidence of gaining momentum in the hotel market.
“Strong demand levels in Sydney have produced consistently high occupancies and escalating hotel average daily rates (ADRs). With minimal new supply mooted in the short term, occupancies are likely to remain high with positive ADR growth,” Mr Jackson said. “This strong trading outlook is drawing huge interest from both domestic and offshore buyers, with Asian buyers having been particularly active in the first quarter of this year. This is driving the strong pricing being achieved for hotel assets in strong centres such as Sydney.”