CBRE Hotels’ Andrew Jackson negotiated the sale of the 128 room Aria Hotel to Sydney fund manager Aligned FM – representing the group’s first acquisition in Canberra. The group also owns assets in Sydney, Melbourne, Perth, Brisbane, as well as several regional across NSW.

The hotel is one of the Capital’s most stylish and conveniently located accommodation offerings being only 2 kilometres from the city centre and 500 metres from the Dickson dining precinct, nestled in the midst of this established suburb. 

Glen Boultwood, CEO of Aligned FM commented on the group’s latest purchase: “The acquisition of the Aria Canberra provides further diversification to our existing portfolio, access to a market with strong trading performance and the ownership of a well built and maintained property.  The property will be rebranded to an Adina on 1 March 2018 (managed by TFE Hotels).”

TFE Hotels CEO Rachel Argaman said construction had already started on another exciting new Adina Apartment Hotel to open at Constitution Place in 2020, designed by Bates Smart. 

“Canberra is really coming into its own as a great destination for leisure travellers, not just the traditional Government and corporate travellers,” she said. “It offers a wonderful selection of history, art, sporting and cultural events, and is gathering a following for its food and wine scene. Its popularity will grow in coming years as increased tourism funds the development of more and more attractions for domestic and international travellers.”

Positioned on a 2,691sqm landholding, the hotel was sold with vacant possession being previously owned and operated by a local operator. 

The sale comes amid strong activity in Canberra’s hotel market, with CBRE Research highlighting its nation leading performance. 

CBRE Research Manager Ben Martin-Henry commented: “The surprising stand out performer for the 2017 has been the Canberra hotel market, which has managed to absorb the wave of new supply it experienced over the last couple of years.

“Stable supply and strong increases in tourism in 2017 gave operators the confidence to raise room rates without fear of occupancy falls.” 

Mr Boultwood added: “Aligned FM has been selectively acquiring hotels and serviced apartment complexes around Australia to create a diversified portfolio for its investors.”

“Over the past 18 months Aligned FM has exchanged contracts on four properties worth around $100 million including the Aria Canberra, Quest Nowra, Quest Penrith and one other. Upon completion of these assets the portfolio will grow from 940 rooms to 1,261 rooms.”

Adina Serviced Apartments Canberra Dickson is the 33rd hotel in the rapidly expanding portfolio, after two Adina Apartment Hotels opened in Leipzig and Hamburg in late 2017. There are at least 10 new Adina hotels on the horizon, spanning five countries. 

To discuss the sale in further detail contact Andrew Jackson of CBRE via the below contact details.

See also:

Hotel development dominating the market

Ovolo Hotels enters Canberra with Hotel Hotel

Canberra tourism numbers sees Abode Group and GEOCON strengthen