The Rydges Sydney Airport Hotel has gone up for sale in what is expected to be one of the biggest single-asset deals of the year, with price expectations of up to $ 270 million.
This is the first time the 318-room property, 100m from the international terminal, has been on the market since it was developed by Sydney businessmen Phillip Wolanski, David Baffsky and John Landerer in 2013 .
In addition to its rooms, the hotel has three places to eat, including a bar on the top floor; 11 conference rooms and a business and fitness center.
It is being sold as vacant possession by Wayne Bunz of CBRE Hotels and Mark Durran of JLL.
“Although the hotel has been very well managed by Event Hospitality under their Rydges brand, vacant ownership can be obtained, providing owner-operators and alternative management companies with substantial brand exposure,” said Durran.
“Blue-chip hotel assets in strategic locations such as the Sydney Airport compound, particularly those with vacant ownership, are in high demand and prices remain strong. “
The global rollout of Covid-19 vaccines and the resulting indications that international travel will resume this year has prompted hotel owners to launch the campaign after several unsolicited approaches.
Bunz said the campaign was timed to capitalize on the new trans-Tasman travel bubble, which started with New Zealand this week.
Before the pandemic, the hotel had one of the highest occupancy rates in the city. It was built as part of the major expansion of the international airport business compound, which included additional offices.
As the pandemic approached, occupancy rates were 97% and an average daily rate of $ 243, which has since fallen to 36% so far this year, while the average revenue per available room is just right. above $ 46.
The announcement comes after the five-star Primus hotel in central Sydney was sold for $ 130 million, or $ 767,000 per room, reflecting a historically low return on investment.
Across Sydney, a number of new hotels are currently under construction, comprising more than 2,400 rooms, including 500 in key peripheral markets, compounding a potential over-supply problem.
New hotels underway include James Packer’s Crown Hotel Resort, One Circular Quay, Pontiac Land Group’s 5-star Capella Sydney, and Doma Group’s 230-room Little National.
Other hotels waiting behind the scenes include the BVN-designed Voco Central and the 55-story, $ 700 million Andaz Hotel.
Meanwhile, The Star is pursuing a billion-dollar project at its Sydney Pyrmont waterfront site, with revised plans ahead of advice for a 6-star two-tower hotel.