Chinese consortium may break Australia's hotel sale record

Ribbon

Private development and construction group Grocon has reportedly selected a heavyweight (but unnamed) Chinese consortium to buy the $700 million hotel development it proposed for Sydney’s Darling Harbour.

The sale of The Ribbon would be the biggest sale of a single hotel property in Australia's history. 

The deal, which is supposedly close to being finalized, comes after two major hotel portfolio sales to Asian investors—that of M&L Hospitality and the Ascendas Hospitality Trust—were called off this month. Singapore’s Kum family scrapped its $1.5 billion sale of the bulk of its M&L Hospitality hotels portfolio in spite of "hefty offers" for its key properties. These include one of Sydney’s largest hotels, the Four Points by Sheraton Sydney, which is being remade into a major hotel and office complex. The 2,089-room M&L portfolio also included the Travelodge Docklands in Melbourne, the Hilton Auckland, Christchurch’s Chateau on the Park, and Sydney’s Swissotel. In the same week, the rival Ascendas Hospitality Trust, which has a hotel portfolio across the region that is valued at $1.4 billion, was also taken off the market. 

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.

Grocon is planning to build a "six-star" W Hotel and luxury serviced apartments, which were marketed on Grocon’s behalf by Craig Collins and Simon Storry of JLL and Dean Dransfield of consultants Dransfield Hotels and Resorts.

Source: The Australian

Read more on

Suggested Articles

The China-based conglomerate also acquired the iconic brand's IP assets as part of the £11 million deal, with the brand expected to live on online.

The sale is the latest step in Park's asset-light strategy.

As a rapidly rising hotel investment market, Italy is attracting interest from a range of companies—most recently, France's Covivio Hotels.