YTL entered the Australian hotel investment market in 2012 with their landmark $415 million purchase of the Marriott Portfolio, also brokered through JLL Hotels & Hospitality Group. The portfolio included Marriott hotels in Sydney, Melbourne, and Brisbane, and YTL now adds The Westin Perth to their luxury Marriott managed hotels in Asia, the JW Marriott Kuala Lumpur and The Ritz-Carlton Kuala Lumpur.

The 28-storey Westin Perth is one of Australia’s newest 5-star hotels, located to the east of Perth CBD in the city’s heritage quarter. Straddling Hay Street and Murray Street, the brand new asset is 12km from Perth International Airport and a short walk to Perth’s commercial offices, Hay Street Mall, Perth Exhibition & Convention Centre, and in close proximity to Royal Perth Hospital.

While the final sale price was not disclosed, market analysts have suggested a sale price upward of $200 million.

Sale at a glance:

• Price: $200m
• Purchaser: YTL Group
• Vendor: BGC Group
• Price per room: $557k
• Broker: JLL Hotels & Hospitality Group

Having opened recently in April 2018, the hotel features 368 large guest suites and 2,300 square metres of convention facilities, including the CBD’s largest ballroom. The hotel’s signature restaurant Garum, helmed by Melbourne celebrity chef Guy Grossi, has been an outstanding success since opening. Other facilities include a fitness studio, infinity edge outdoor swimming pool, and award-winning Australian spa Bodhi J.

The sale of The Westin Perth also includes Hibernian Place, offering an outdoor plaza of 2,000 square metres with notable F&B tenants such as Offshoot by Mary Street Bakery, Arthur & Co., Huxtaburger, Hadiqa, Goody Two’s Japanse Supper Club, and Uber’s WA headquarters. The property has further development potential for a commercial office tower with an existing DA for 36,545 square metres of premium Grade-A office.

“Despite competitive market conditions, The Westin Perth has performed strongly since opening in April 2018, exceeding budgeted performance, reflecting the high quality of the offering,” said Mr Durran.

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Mark Durran, JLL Hotels & Hospitality Group’s Managing Director

“Given Perth’s positive future market outlook over the longer-term, major investors are currently seeking quality hotel investments to position themselves for the future market upswing and the income and capital growth that will ensue”, he added.

This follows the announcement in November regarding the sale of Aloft Perth to Hiap Hoe Ltd. Like the Aloft, the Westin will continue to be successfully managed and operated by Marriott International, maintaining the same team and the same high standard of service.

BGC director Sam Buckeridge said the Board was pleased with the strong interest shown by potential buyers and the outcomes achieved in relation to both hotels, freeing up in excess of $300m of Capital for re-deployment by the BGC Group.

Click here to view the BGC website.

“We are very proud to have created two of Perth’s best hotel offerings, combining BGC Construction’s commitment to quality with Marriott’s fantastic service delivery,” Mr Buckeridge said.

The transaction is expected to complete in the first quarter of this year.

BGC also said in a statement that they wish to thank JLL Hotels & Hospitality Group and JLL Asset Management for their successful assistance in the sale.

Perth has a number of world-class infrastructure projects that are underway which will broaden the city’s appeal including Riverside, Perth City Link, Western Australian Museum and Elizabeth Quay at a combined worth of approximately $8.5 billion.

Click here to view the YTL Hotels website.

One of the largest contributors touted to benefit the Perth accommodation market is Perth International Airport’s $2.5 billion expansion program that will allow it to keep pace with passenger demand. The WA Government has also earmarked $425 million for investment over the coming five years on purely destination marketing and event tourism, improving the city’s appeal and aggressively targeting increased airline capacity.

The sale of the hotel follows a number of major landmark hotel transactions in Australian gateway cities, most recently the sale of the Four Points by Sheraton Sydney Central for $156 million and the Sheraton Melbourne in late 2017, both deals brokered by JLL Hotels & Hospitality Group.

Click here to view the Westin Perth website.

See also:

Aloft Perth hotel sold in $100m deal Mark Durran JLL Hotels

Jerry Schwartz finally settles on $156 million acquisition of Four Points by Sheraton Sydney Central Mark Durran JLL Hotels

5-star 'Midnight Hotel' Canberra for sale Mark Durran JLL Hotels