Singapore investment and asset management company High Street Holdings (HSH) has added another Australian hotel to its fast-growing global portfolio with the purchase of Peppers Kings Square in Perth for circa $26 million.
CBRE Hotels negotiated the off-market sale, which represents the third Australian hotel acquisition in 12 months for HSH following Rydges North Sydney and the Kennigo Hotel Brisbane.
HSH partner Daniel Yip commented, “We are extremely excited to have completed the acquisition of the Peppers Kings Square Perth. The freehold, 120-key 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.”
The property will also be rebranded as Rydges Kings Square.
“Given the supply and demand dynamics of the Perth hotel market, the hotel’s location and the size of rooms, we are thrilled to strengthen our relationship with EVENT Hospitality & Entertainment (EVT) and bring the Rydges brand back to Perth,” Mr Yip said.
The CBD hotel is located directly opposite Perth Arena at 621 Wellington Street and is positioned to capture both corporate and leisure demand. Opened in November 2016, the hotel consists of 120 large and well-appointed guest rooms, a ground-level restaurant, meeting facilities, and gym.
CBRE’s Head of Capital Markets WA, Aaron Desange said, “Both corporate and leisure travel is recovering throughout the Asia Pacific region, and Perth hotels remain exceptionally well placed to benefit from this. Perth CBD RevPAR continues to improve and CBRE Hotels forecast this growth will climb further into 2023. 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.”