Sydney CBD Hotel In Exclusive Due Diligence

Royal Group Holdings is apparently in exclusive due diligence to buy Sofitel Sydney Wentworth, in what will likely be the largest hotel deal of the year.


Key points:

  • Royal Group likely buyer of 436-key Sofitel Sydney Wentworth

  • Singapore’s Frasers initially bought hotel for approx. $200m in 2014

  • Hotel expected to transact for over $300m


No luxury five-star CBD hotels have traded in Sydney since Sheraton on the Park, the Hilton and Westin Sydney exchanged hands five years ago.


Now Royal Group Holdings is apparently in exclusive due diligence to buy Sofitel Sydney Wentworth, in what will likely be the largest hotel deal of the year. The 436-key hotel is expected to transact for over $300m.


After initially being purchased by Frasers Centrepoint in 2014 for $202.7m, Frasers shifted the hotel into its Singapore-listed hotel REIT.


The possible deal comes at a time when a number of hotel developments are being shelved across Sydney. For example, Dexus cancelled plans for a high-end hotel on Hyde Park and instead sold the property to Charter Hall. Charter Hall intends to keep the property as solely office, in what is currently a very hot office market.

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