This article is from the Australian Property Journal archive
GPT Group is giving potential buyers just over a fortnight to make a play for its $230 million Four Points by Sheraton Darling Harbour Hotel in Sydney's CBD.
Exclusive agents Jones Lang LaSalle Hotels’ managing director Craig Collins and Asia Pacific chief executive David Gibson are marketing Australia’s largest hotel via an expressions of interest campaign.
The agency has started a preliminary global marketing campaign for the significant asset.
Collins said the 4.5-star hotel is trading extremely well and consistently achieves robust occupancy and room rates.
The hotel is currently managed by Starwood Hotels and Resorts Worldwide however the property can be purchased with vacant possession of hotel management.
Located in Sydney’s CBD overlooking Darling Harbour, the 14 level building features 630 guest rooms (including 45 suites), a lobby restaurant and bar, 14 meeting rooms plus an outdoor terrace, fitness centre, business centre and a retail and office component comprising approximately 3,467 sqm of lettable area.
Gibson said the outlook for Sydney’s hotel market remains positive.
“According to the most recent Australian Bureau of Statistics tourism accommodation performance results, Sydney achieved RevPAR growth of 6.8% during the March quarter 2008 and our research indicates ongoing growth,” Collins said.
“The hotel will appeal to domestic and international investors alike, as well as international operators seeking to gain significant market exposure through such a large asset.
“With the hotel’s strong trading performance expected to continue and the limited new supply outlook for Sydney’s CBD, a very good level of interest has already been received,” Collins concluded.
The sale is part of GPT’s wider strategy to dispose of its $900 million plus Voyages hotels & resorts portfolio and Four Points by Sheraton Hotel portfolio, which the group said is a poor performing division.
Unlike the retail, office and industrial business, GPT was forced to downgrade earnings in the hotel and tourism portfolio to $42 million for FY2008 down from earlier forecasts of $57 million.
The portfolio comprises 16 properties of which 15 are run by Voyages, GPT’s hotel management business. The Voyages properties are located in Northern Territory including the Alice Springs Resort; Ayers Rock Resort; Kings Canyon Resort and Longitude 131o.
In Queensland, they are located at Bedarra Island; Brampton Island; Dunk Island; Heron Island; Lizard Island; Silky Oaks Lodge Daintree Rainforest; Wilson Island; and Wrotham Park Lodge.
In Western Australia, they are El Questro Homestead and El Questro Wilderness Park, both in the Kimberley Region.
And in Tasmania, there is one property, the Cradle Mountain Lodge.
The Expressions of Interest campaign closes on September 08 (if not sold prior).
Australian Property Journal
