The 122-room Hotel stratum comprises 10 of the 45 level mixed-use tower at 27 Park St, Sydney, with the sale price representing a 23% increase on purchase price in under two years.

Commenting on the result, iPG Group CEO, Michael Gu said: “We identified a clear strategic opportunity to buy the Park Regis in 2016. We predicted income would grow due to market dynamics. This prediction has been realised with favourable net income growth during our ownership.”

iPG capitalised on this opportunity and chose to divest this highly commercial hotel asset in Sydney’s City Centre.

Recent refurbishments as well as increased sales and marketing efficiencies, stemming from StayWell, are set to underpin higher average rates at the Sydney hotel.

In its recent ‘Q1 2018 Hotel market analysis report’, iPG predicted buoyancy in the hotel sector will continue for the remainder of the year, with Sydney to experience the highest activity levels and strongest ADRs.

Settlement is expected on October 31, 2018. The sale sees iPG well positioned to continue its growth trajectory towards $10B AUM by 2020.

The sale was handled by Gus Moors and Karen Wales of Colliers International. "iPG have combined astute timing and sound business acumen to create substantial uplift in this asset over the period of Its ownership." said Mr Moors.

See also:

Get to Know Gus Moors, Head of Hotels Australia, Colliers International

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