Rydges Sydney Harbour hits the market with $130m+ hopes
One of Sydney’s most iconic hotels is up for sale, in a transaction that is set to be a bellwether of private sector confidence in the tourism industry as Australia opens up post-closed borders.
The Rydges Sydney Harbour, located in Sydney’s historical The Rocks precinct, is on the market, with the 176-room property expected to fetch more than $130m.
The hotel commands a prize position on the edge of the Sydney CBD, walking distance to the Opera House, the Harbour Bridge, the Walsh Bay Arts Precinct and the Overseas Passenger Terminal.
The hotel is being brought to market by Colliers on behalf of New Landmark Hotels.
“Boasting a prized Sydney Harbour dress circle location, Rydges Sydney Harbour offers a rare opportunity to acquire a once-in-a-generation asset, wrapped within a heritage facade, in the most historic part of Australia,”, Colliers’ Head of Hotels Gus Moors said.
“The hotel has a history of strong performance owing to its unique location with stunning harbour and city vistas from all accommodation rooms. This asset offers investors the potential for tremendous upside through select capital works to reposition for the decade to come, against a backdrop of recovering global tourism.”
Sitting at 55 George St, Rydges Sydney Harbour, is one of Sydney’s most popular and well known hotels in the country. It is expected to play a key role in both the domestic leisure and corporate markets and act as base for Australian and overseas patrons after the country opens up to international visitors on November 1.
The hotel sits on a 1,825 sqm island site occupying two buildings over six and eight floors, with a 55-metre George Street frontage, a feature of which is its heritage facade and atrium lobby and glass ceiling.
The rooftop pool and event area atop the hotel boasts panoramic views of the Opera House and Harbour Bridge. Many of the rooms also command jaw-dropping views of two of the world’s best know architecture marvels.
The guest rooms range from 24sqm to 77sqm and they are serviced by a range of in-house services including dining, retail and onsite parking.
According to Colliers: “The hotel last transacted in 2003 and is under a long-term ground lease with 80 years remaining, while vacant possession of the hotel is available from January 1st 2025”.
Rydges Sydney Harbour has similar heritage qualities and a room count close to the Primus Hotel in Sydney that sold earlier this year for $132m.
“Rydges Sydney Harbour demonstrates consistent outperformance when compared to 4-star hotels in Sydney,” Karen Wales, Colliers National Director Hotels said.
“This sale represents the perfect combination of a highly profitable, income generating business, with value-add repositioning opportunities in an irreplaceable Sydney city location.
“It is an exciting proposition to access the tightly held hotel ownership landscape and a strategic target for many buyers.”
The International Expressions of Interest campaign closes Thursday 11th November 12pm AEDST.