The Park Regis City Centre Sydney, located at 27 Park Street Sydney is being offered for sale with the benefit of a Management Agreement with Park Regis Hospitality Management Pty Limited, a subsidiary of Staywell Holdings Pty Limited, which provides an annual underwrite of the trading performance until the end of 2021.

Colliers International’s Gus Moors and Karen Wales have been appointed to the sale. Mr Moors said the Park Regis Sydney was an exceptional hotel property, offering a prime location at the corner of Park and Castlereagh Streets; a broad customer base; and robust growth and trading performance. The property is expected to attract interest in the mid-$50million range.

“Sydney is a very tightly held ownership market, with no CBD trading hotels transacting in 2017,” Mr Moors said. “The opportunity to secure such well-located property is incredibly rare, with only six CBD hotel sales recorded over the past three years and only two of these have transacted for less than $100 million.”

The Park Regis Sydney features 122 well-appointed rooms and suites, with many overlooking Hyde Park and Sydney’s skyline. Recent capital upgrades have taken place at the property including retiling, window glazing and installation of split system air conditioning to all rooms.

A rooftop swimming pool and sun deck offers panoramic views of Sydney Harbour and the city and is a major drawcard for the leisure market. 

The Park Regis Sydney occupies ten floors within a larger mixed-use tower, with residential apartments above and retail space located on the ground and lower ground floors, as well as car parking.

 “The Hotel’s central CBD position ensures that it captures a broad variety of demand through its proximity to major commercial towers, the International Convention Centre, Chinatown as well as the city’s main shopping and theatre district,” Mr Moors said.

Ms Wales said Park Regis Sydney currently enjoyed a strong, growing trading performance and excellent profit margins, underpinned by the strength of the Sydney accommodation market. 

“Two competing hotels in the immediate precinct were compulsory acquired to make way for the development of the new Sydney Metro. As a result, the Park Regis Sydney is now poised to dominate the midscale CBD hotel market,” she said.

“The Sydney city hotel market is one of the best-performing accommodation markets in the Asia Pacific region in both the short and long term. The city boasted an occupancy above 88% in 2017, with average rate growth of 7% year on year – this is the largest increase since Sydney hosted the Olympics in 2000.

“The supply outlook is very limited and tourism generating infrastructure in the form of the International Convention Centre, Crown Casino and Barangaroo will broaden the appeal of the City for visitors.

“The city is also revitalising its transport infrastructure with the new light rail along George Street opening in 2019 and an underground metro system opening in 2024. Park Regis Sydney is located close to both new transport links. 

“The strong performance of Sydney’s hotel sector is expected to continue, supported by a strong economic backdrop and significant investment in infrastructure with an unprecedented
amount of funds being directed towards delivering major transport and infrastructure projects throughout the CBD and surrounds.

“The opening of the new International Convention Centre in late 2016 has provided a further and ongoing boost to the hotel sector.”

The property is for sale via EOI closing 13th March 2018. Click here to view the listing on the Colliers International website.

Click here to view the official Park Regis City Centre website.

Click here to view Gus Moors' profile on The Hotel Conversation.

See also:

Sydney's Ivy nightclub to be replaced by 55-storey hotel

Hotel concept proposal for Sydney CBD's Bligh House

Meriton towers planned for Parramatta riverfront