JLL Hotels & Hospitality Group today announced that it has negotiated the transaction of the Hilton Sydney Hotel, the largest single asset hotel deal ever closed in Australia. The hotel was acquired by Barings Private Equity Asia (“BPEA”) for approximately A$530 million (US$370 million) and the transaction was advised by members of JLL Hotels & Hospitality Group’s Asia Pacific and Australia teams.

The Hilton Sydney Hotel offers 587 guest rooms & suites together with a lobby cafe, restaurant, two bars and approximately 4,000 sqm of conference and meeting space. Further amenities include a swimming pool and large gymnasium operated by Fitness First.

“This transaction is emblematic of the confidence in Sydney’s rapidly recovering hospitality sector and its longer-term investment fundamentals,” said Mark Durran, Managing Director, Investment Sales, JLL Hotels & Hospitality Group, Australia. “Despite the current headwinds, landmark hotel assets remain highly sought after by global investors. Established hotel assets of this scale and calibre that offer clear asset enhancement opportunities rarely come to market and consistently attract strong global and local investor interest. We extend our congratulations to BPEA for successfully navigating the current challenging economic environment and fully delivering on their commitment and closing, thereby securing for their investors a true institutional quality asset with great long-term upside potential.”

The hotel underwent a multi-million major refurbishment in 2019/2020, which has further increased its prestigious standing and is expected to improve its performance in the tightly-held Sydney 5- star market. Notable works include the expansion of room count from 579 to 587, together with upgrades to all guest rooms, significantly enhancing the overall guest offering.

This landmark luxury 5-star Sydney CBD hotel features dual street frontages to both George Street and Pitt Street and is located within the Midtown Office Precinct of the Sydney CBD, close to the retail heart of Sydney, as well as a large number of major corporate offices and leisure attractions including the Darling Harbour convention and entertainment precincts.

“Global investors have long sought to increase their exposure to Australia’s hospitality market through the acquisition of marquee assets. JLL is extremely proud of this outstanding result and we remain confident that investments in Australia hospitality sector will reach our US$1.5 billion full-year forecast,” says Nihat Ercan, Senior Managing Director, Head of Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group.

JLL Hotels & Hospitality Group has successfully completed three of the four largest major hotel sales in Sydney’s CBD since the onset of the pandemic. The Hilton Sydney Hotel transaction follows the recent sales of Primus Sydney for A$131.5 million (US$92 million) and Four Points by Sheraton Sydney, Central Park for A$146 million (US$102 million).

The closing of the Hilton Sydney transaction has now more than doubled total settled transaction volumes year-to-date in Australia to approximately A$750 million. According to the latest STR data, Sydney revenue per available room (RevPAR) in the first half of 2021 is up 49.9% compared to the same period last year.

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