Just a week after Sydney-based developer JL Parramatta tapped Starwood to open a Four Points by Sheraton in the burgeoning Sydney neighborhod of Parramatta, another notable sale has drawn attention to the area.
This week, the Mercure Parramatta was sold to a private Asian investor in a deal valued at $40 million. The sale was completed by CBRE Hotels director Andrew Jackson, who said the inquiry level for the property was “very high.”
The 165-room hotel is managed by Accor and operates under the Mercure brand via a management agreement extending until 2021.
"Parramatta is becoming one of the go-to locations for investors seeking to move away from the tightly held Sydney CBD market and into a more affordable area," Jackson said, citing high occupancy rates and ADR for hotels in the area as an appealing factor for developers and investors.
CBRE Hotels' research manager Benjamin Martin-Henry said the hotel market in Australia was split between cities suffering from oversupply, such as Darwin, Brisbane and Perth, and cities where demand growth was outstripping supply growth, such as Cairns, the Gold Coast and Sydney.
Photo courtesy of Google Maps.