Sydney extended stay hotel up for sale

AUS: The Radisson Hotel and Suites at Darling Harbour has been put up for sale by owner and operator Ausbao.

The hotel is currently listed at an initial AUS$40 million.

The 100-room hotel is currently closed due to the global COVID-19 pandemic, alongside nearly 40 other Sydney hotels. The listing has garnered major interest from co-living groups, according to brokerage group Colliers International.

Gus Moors, head of Hotels at Colliers, notes that since the price was announced the number of offers have sharply risen. He said to Commercial Real Estate “We’ve had interest from Singaporean investors, who are classic counter-cyclical hotel buyers as well as the alternative-use guys including co-living and build-to-rent.”

The property is currently working within a franchise agreement with Radisson, but the operators plan to terminate this agreement. This will allow new owners to introduce their own operating structure.

Ausbao, a subsidiary of Beijing Development Capital Holding, initially put the property up for sale around four years ago, though withdrew it from the market for undisclosed reasons. The current sale follows the company investing in a new 160 room crowne plaza in Sydney.

Moors added: “Ausbao always wanted to own only one Sydney hotel, so the Radisson is superfluous to their needs. While the global hotel sector is under pressure currently, well located properties in key gateway cities will always outperform both from a trading and investment perspective. “

Alongside the 100 room aparthotel, the sale also includes leasehold interest in a set of 24 serviced apartments.

The Australian hotel industry is still developing strongly, with the QT hotel in Newcastle being approved earlier this week. Sydney is also seeing the construction of a new MGallery hotel.

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