Australian real estate investment manager Wentworth Capital, in partnership with Hong Kong-based Sun Hung Kai & Co, has acquired the Novotel and ibis Darling Harbour from Pearl Hotels, a wholly owned subsidiary of ADIA, for a combined $390 million.
The transaction represents the largest trading hotel transaction in Sydney in four years.
The transaction was exclusively negotiated by CBRE Hotels’ Michael Simpson, Andrew Williams and Nick Hill.
The acquisition was funded via Wentworth Capital’s flagship Wentworth Real Estate Private Equity Fund I. Both hotels will continue to be operated by Accor under long-term management agreements.
Located in the heart of Darling Harbour, the two assets comprise 781 guest rooms across two complementary market segments. The upscale Novotel Darling Harbour offers 525 guest rooms, two food and beverage venues, 10 meeting and event spaces, an outdoor pool, gymnasium, tennis court and secure onsite parking. The midscale ibis Darling Harbour offers 256 guest rooms, the ibis Kitchen & Bar, additional meeting space and onsite parking.
CBRE Hotels Managing Director Michael Simpson said, “The sale price reflects the quality of the cash flow profile of the Hotels, the upside opportunities and the depth of the investor pool in Sydney’s hotel market. Large-scale assets with proven income, value-add opportunities and genuine redevelopment potential continue to attract the greatest depth of domestic and international capital.”
