Rydges Hotel sold for $75m as tourists return
The Rydges North Sydney has sold for $75 million.

Rydges Hotel sold for $75m as tourists return

ASX-listed Event Hospitality and Entertainment has sold its Rydges North Sydney hotel for $75 million to a Singapore investment and asset management company High Street Holdings, which has plans for more acquisitions as the tourism sector improves.

The 2549 square metre freehold 167-key hotel at 54 McLaren Street was sold through CBRE Hotels to High Street Holdings, which last year made its first foray into the Australian tourism sector through its purchase of the Kennigo Hotel Brisbane.

High Street Holdings partner David Marriott said the Singapore group’s family office was actively pursuing further Australian investment opportunities as part of the continued diversification of its global portfolio.

“The transparency of the Australian market and the strength of domestic demand, which accounts for around 80 per cent of hotel visitation numbers, continues to be a key attraction in light of the volatility in international tourism recently,” Marriott said.

After having been almost decimated by the closure of domestic and international borders during the global pandemic, the hotel sector is undergoing a revival with investors coming back with expansion plans.

CBRE Hotels’ national director Wayne Bunz said the sale highlights the recent rebound in demand from Asian-based capital reinvesting into Australian hospitality and accommodation assets.

“Sydney is a truly global city, renowned as a global tier-one investment destination with hotel assets highly sought after but tightly held,” Bunz said.

CBRE Hotels managing director Michael Simpson added that the buyer was attracted by the $8.4 billion of large-sale development projects either under construction or in the planning stages in the North Sydney precinct.

“This significant influx of commercial projects and limited hotel supply bodes well for the local accommodation market,” Simpson said.

Reflecting the demand in the sector, Pro-invest Hotels and the Intercontinental group have launched the country’s first Holiday Inn Express & Suites branded property on the Sunshine Coast.

It will be a joint partnership that combines a suite/apartment style offering among its regular hotel rooms in the heart of Maroochydore City.

Pro-invest Hotels chief operating officer Shantha de Silva said the opening of the property was a positive sign for the local tourism industry.