The China-based Nanshan Group has purchased the Pullman Sydney Airport hotel, which is being developed by Goodman Group at a cost of about $69 million. The hotel is slated to open toward the end of 2016.
According to the Financial Review, the Shandong-based company paid an estimated $84 million for the 229-room, five-star hotel. Last month, Pullman owner Accor was reported to be taking a 15 percent equity stake in the property.
The new airport hotel is part of a $100 million development undertaken by ASX-listed Goodman. It will be operated by Accor Australia under a management agreement. The hotel was marketed for sale by Peter Harper of Jones Lang LaSalle Hotels.
The sale, which the paper calls "off-the-plan," is a strong indicator of how interested international investors are in Australia's five-star hotel market. A new hotel report from Savills indicates that foreign investors accounted for nearly 60 percent of the 69 hotel sales ($5 million and above), which reached $3.7 billion over the 12 months to September 2015, up 12 percent on the previous 12-month period. In its latest hotel report, CBRE Hotels Rob Cross noted: "From the perspective of international investors, the Australian hotel sector is very appealing."