Significant Sydney Freehold Hotel Sold
Right on the heels of the sale last month of John Singleton’s Marlborough Hotel in Newtown, Andrew Jolliffe, Asia Pacific Director of the Ray White Group has facilitated an off-market transaction for the recently remodelled Coolibah Hotel in Sydney’s Western Suburbs.
The sale of the Coolibah Hotel, the highest freehold going concern sale achieved nationally to date in 2017, represents further validation of the widely espoused view regarding the strength of the Sydney freehold hotel market.
“We’ve spoken openly, regularly and confidently in the past about the emergence of the Super A-Grade hotel category, and the applicable yields associated with irreplaceable hospitality assets such as the Coolibah Hotel; and the off-market transaction we have managed on behalf of our client is further and very clear illustration of the strength and depth of the market in this category sub-set”.
“Our client identified this time in the market as a suitable exit point at which to conclude its long term investment in what is truly an outstanding hotel property spanning some 8500 symmetrical sqm. In doing so, our client identified our discreet off market services as the appropriate sale process mechanism via which to meet its divestment objectives. Objectives and services which are often indexed to a combination of both price and confidentiality” advised Jolliffe.
Whilst not willing to disclose details regarding either the purchase price or identity of the successful Purchaser, Jolliffe confirmed the purchase was concluded by a significant and experienced hotel group with many decades of ownership and operational experience.
“The profile of the Purchaser, much like our Vendor, is one of an established and very well respected hotel group” concluded Jolliffe. “The market has been patently well supported by sophisticated on and off-shore investor groups, and we feel this trend will continue; however it is most reassuring to all stakeholders in the space when the considered view of vastly experienced hoteliers manifests itself in such a deliberate statement as has been made regarding the acquisition of this irreplaceable hotel” Jolliffe concluded.
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