Australia's booming hotel scene shows no sign of slowing down for the new year. In a notable start for 2016, the Vibe Hotel Sydney in the central business district has been grabbed by Singapore's Far East Organization for close to $90 million.
The vendor, the privately owned Toga Far East Hotels, has agreed to a longer-term leaseback than what was expected when the asset went up for sale in mid-2015. According to the Australian Financial Review, the decision may have been a key factor for Far East's interest: The company has traditionally taken a long-term view with its Australian real estate investments.
The paper also notes that the anticipated future scarcity of "well-located" Sydney CBD hotel sites may have added to the decision by TFE Hotels to keep its Vibe brand operating for at least another several years.
Knight Frank's John Bowie Wilson, Dominic Ong and Tim Holtsbaum and JLL's James Aroney and Mark Durran handled the sale.
TFE Hotels is also reportedly planning a 27-story luxury hotel at 280 George Street after lodging a development application in October.