Vibe Hotel Sydney sells to Singapore's Far East Org. for $90M

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.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

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. 

Suggested Articles

HVS Brokerage & Advisory, Milmark Hotel/Motel Investments and Marcus & Millichap arranged sales in Texas, Wisconsin and Florida.

The Reuben Brothers have acquired La Residence hotel in Kalafatis Bay, Mykonos, Greece, for an undisclosed fee.

PPHE told us that it was seeing a “strong pickup” in London after some caution in the fourth-quarter, as the UK capital continued trade strongly.