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HomeAustralia & N.ZealandIPOH Ltd sells Ibis World Square Hotel, Sydney for a bullish A$22.7 million

IPOH Ltd sells Ibis World Square Hotel, Sydney for a bullish A$22.7 million

Contracts have exchanged for the sale of The Ibis World Square Hotel, Sydney to an Australian…

Contracts have exchanged for the sale of The Ibis<.> World Square Hotel, Sydney to an Australian private company for a bullish A$22.7 million. The deal was negotiated by Jones Lang LaSalle Hotels` Senior Vice President, Mr Mark Durran following an Expressions of Interest campaign that closed Thursday last week.

The hotel attracted strong interest with over 62 enquiries registered. Ten offers to buy the asset were received and keen bidding ensued said Mr Durran. The sale price achieved for this hotel and other recent sales, such as The ANA Sydney and The Westin Hotel Sydney, reflect investor confidence in Sydney`s improving hotel and tourism market fundamentals.

The Hotel opened in early 1999 and was purpose designed as an Ibis Hotel. It is one of the most profitable hotels in Sydney and has consistently outperformed market averages.

Located near the corner of Goulburn and Pitt Streets, the 17 storey hotel has 166 rooms and a 100 seat breakfast room. The two stratums sold are subject to a 125 year ground lease.

The Hotel is currently operated by Accor Asia Pacific.

The room supply outlook for Sydney is strongly positive, as the trend to residential conversions continues to reduce the total room stock of the city. Since October 2000, total room supply has contracted by 2,072 rooms. A further 961 rooms are expected to close by December 2004 giving a total of 3,033 rooms or 16 hotels being converted or redeveloped to residential units. Most of this redevelopment has occurred in the 3-4 star sector, he added.

Mr Durran said Buyers are positioning themselves for the anticipated strong future growth prospects as market recovery continues to gather pace over the next year.

This investor confidence augurs well for the sale of Australia`s premier hotel asset the 5 star Park Hyatt Sydney which is currently being marketed globally by Jones Lang LaSalle Hotels.

Co-Founder & Chief Editor - TravelDailyNews Media Network | + Articles

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.