High Street targets Australian hotels after Rydges North Sydney purchase
Fresh from its $75m purchase of Rydges North Sydney, Singapore investment manager High Street Holdings has flagged plans to buy more hotels in Australian capital cities.
The group added to its local portfolio with the 167-key North Sydney hotel from the listed Event Hospitality Entertainment Ltd, as business and leisure tourism continues its recovery from the pandemic.
The latest High Street Holdings acquisition was negotiated on behalf of a Singapore family office, which last year made its first Australian tourism buy with the purchase of the Kennigo Hotel Brisbane. CBRE Hotels advised Event on the North Sydney sale.
High Street Holdings partner David Marriott said the family office was actively pursuing more Australian investment opportunities as part of the continued diversification of its global real estate portfolio.
“The transparency of the Australian market and the strength of domestic demand, which accounts for circa 80 per cent of hotel visitation numbers, continues to be a key attraction in light of the volatility in international tourism in recent years,” Mr Marriott, a former JLL Hotels executive, said.
Fronting 54 McLaren St, Rydges North Sydney occupies a major 2549sq m freehold site in one of Australia’s largest corporate markets and the hotel will be refurbished after the deal settles.
CBRE Hotels’ national director Wayne Bunz said Sydney was renowned as a global tier one investment destination, with hotel assets highly sought after but tightly held.
“This sale highlights the recent rebound in demand from Asian-based capital reinvesting into Australian hospitality and accommodation assets,” Mr Bunz said.
It is understood Mr Marriott is looking to invest in other Australian cities, such as Melbourne, and is also keen to keep looking at the Brisbane hotel market.
“Obviously he is very familiar with the Australian hotel market,” Mr Bunz said.
“They have quite a large portfolio and are keen to diversify out of Singapore and they will invest in all different asset classes.”