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The first luxury hotel to be sold in Sydney since 2015, the InterContinental Sydney Double Bay will continue to be managed by InterContinental Hotels Group. (Photo: InterContinental Hotels Group)
Royal Hotels Australia Pty Ltd, part of Singapore’s Royal Group, has entered into an agreement to sell InterContinental Sydney Double Bay to Zobon Real Estate Group Co.,Ltd and Shanghai United Real Estate Inc for about A$140 million.
Commenced in February 2017, the sales process was led by Craig Collins of JLL Hotels and Hospitality Group as well as Richard Abbott of Holman Fenwick Willan.
Collins noted that Sydney faces a shortage of quality hotels available for sale, as such, when one is offered for sale, it generates great excitement among investors.
“The InterContinental Sydney Double Bay sale is the first luxury hotel to be sold in Sydney since the sale of the Westin Sydney in 2015. The Sydney hotel market is hot and in my 22 years of selling hotels I have never seen it this strong,” he said.
He added that the first class hotel is a credit to Royal Group founder Asok Kumar, “who together with two partners acquired a non-operational hotel, completely refurbishing it and repositioning the asset, creating something special”.
Royal Group managing director Peter Wilding revealed that the sale of the hotel was part of its capital recycling strategy following the initial stabilisation period.
“Whilst we understand that the price of circa A$140 Million is a record for non-CBD hotels in Australia, we will miss working with all the local stakeholders in the ongoing rejuvenation of Double Bay,” he said.
“We are pleased with the sale and congratulated the purchasers on their acquisition of a beautiful and unique property.”
InterContinental Sydney Double Bay, which remains open for business, will continue to be managed by InterContinental Hotels Group (IHG®).
This article was edited by Denise Djong.
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