Sydney’s largest hotel deal in 4 years: $390 million Darling Harbour sale
Two Darling Harbour hotels have changed hands for a combined $390 million – the largest trading hotel transaction in Sydney in four years.
Both hotels were acquired by Australian real estate investment manager Wentworth Capital in partnership with Hong Kong-based Sun Hung Kai & Co. and Mulpha Australia, a Malaysian-owned real estate and hospitality investor. The acquisition was finalised this week.
The vendor was Pearl Hotels, a wholly owned subsidiary of Abu Dhabi Investment Corporation.
The hotels are located on Murray Street, just 200 metres apart.
The upscale Novotel Darling Harbour, a 4.5 star hotel, has 525 guest rooms, two food and beverage venues, 10 meeting and event spaces, an outdoor pool, gymnasium, tennis court and onsite parking.
The midscale ibis Darling Harbour, a 3.5 star hotel, houses 256 guest rooms, a restaurant and bar, meeting space and onsite parking.
Both hotels will continue to be operated by global hospitality firm Accor under long-term management agreements.
The Novotel and ibis both occupy prime harbour frontages and a revamp may be on the cards for both hotels, says Marcus Hanna, head of hotels, hospitality and leisure at Mulpha Australia.
“The Novotel and ibis are substantial, well-established hotels in one of Sydney’s most important tourism and business precincts,” Hanna says.
“Their scale, location and long-term potential make them a compelling addition to Mulpha’s hospitality portfolio.
“Mulpha brings extensive hotel ownership, operational and asset management experience to the partnership.
“We look forward to working closely with Sun Hung Kai & Co., Wentworth Capital and Accor to build on the hotels’ existing strengths and identify opportunities to enhance their performance and guest experience over time.”
Mulpha, owned by the billionaire Lee family, already owns an Australian hospitality portfolio that includes the InterContinental Sydney, InterContinental Hayman Great Barrier Reef, InterContinental Sanctuary Cove Resort, Bimbadgen and The Lane Retreat in the Hunter Valley, and its Perisher properties.
Wentworth Capital was co-founded in 2019 by Alastair Nash, a former foundation member of the Australian arm of the private equity firm Blackstone and property developer Mirvac.
It’s acquisition of the Darling Harbour hotels was funded via Wentworth Capital’s flagship Wentworth Real Estate Private Equity Fund I.
The transaction was exclusively negotiated by CBRE Hotels’ Michael Simpson along with Andrew Williams and Nick Hill.
“The sale price reflects the quality of the cash flow profile of the hotels, the upside opportunities and the depth of the investor pool in Sydney’s hotel market,” Simpson says.
“Large-scale assets with proven income, value-add opportunities and genuine redevelopment potential continue to attract the greatest depth of domestic and international capital.”
