InterContinental Double Bay up for grabs at $240m
Sydney’s Double Bay hospitality destination, the InterContinental, whose bar has been recently rejuvenated by Icebergs restaurateur Maurice Terzini, has hit the market with a price tag of $240 million.
The 140-room InterContinental Double Bay is the first major hotel offering for the year and comes as hoteliers across the country invest into a rebound in tourism.
At 33 Cross Street, the InterContinental boasts a star-studded roll-call of visitors through the years including Princess Diana, David Bowie and Sir Elton John. It gained a fresh lease on life last year through Terzini’s award-winning refresh of the hotel bar, known simply as The Bar.
Built in 1991 and originally launched as The Ritz-Carlton, the Bates Smart-designed property has been managed by IHG Hotels & Resorts for the past eight years. It is being offered with the potential for vacant possession by its owners, Fridcorp and Piety Group, who are looking to exit and move on with their individual projects.
The joint owners will be looking to tap appetite for investment into accommodation market as the rebound in tourism gathers steam. There is also a development play potentially in the wings, given the site extends over 3,674 square metres in the heart of Double Bay. The property is being handled by CBRE and Colliers.
“In the medium term, and subject to council consent, the property provides the opportunity to be redeveloped into a premium mixed-use project comprising a hotel, residential apartments and retail,” said Colliers’ Guillaume Volz said.
Along with the resumption of international travel, the emerging trend of hotel branded luxury residences could weigh in favour of the Double Bay hotel.
“Sydney is emerging as a favoured Asia Pacific destination for luxury hotels with branded residences, offering apartments for sale within a hotel-led development,” CBRE’s Michael Simpson said.
“Prominent examples include the Crown Residences at One Barangaroo, 1 Hotel in Melbourne and Mondrian Gold Coast Hotel and Private Residences in Burleigh Heads, with residents afforded access to the same five-star services and amenity as hotel guests.”
The past 18 months have been punctuated by a series of major hotel deals, capped off by the sale of the Hilton Sydney for a record $530 million to Hong Kong-based investment manager Baring Private Equity Asia last year. Late in 2021 KKR joined with local players Futuro Capital and Marprop Real Estate Investors to acquire the Sofitel Sydney Wentworth for $315 million in October.
Hotel owners and operators hope a rebound in international visitors, including from a reopening China, will help fill almost 6000 new hotel rooms due to open this year, including at luxury properties such as Ritz-Carlton Melbourne and W Sydney.
As Chinese tourists take to the air again, spending by international visitors is predicted to surpass its pre-pandemic levels towards the end of this year or by early next year.
