Singapore-listed Frasers Hospitality has acquired the the Sofitel Wentworth in Sydney for around US$176 million. This marks Frasers Hospitality Trust's first acquisition since its initial public offering in June last year, and its third hospitality asset in Sydney. The group’s other Sydney properties include Fraser Suites Sydney and Novotel Rockford Darling Harbour.
Once the deal closes, Australian assets will comprise 22.4 percent by valuation of FHT’s property portfolio. FHT’s existing portfolio of approximately S$1.66 billion will be enlarged to approximately S$1.90 billion after the proposed acquisition, Frasers Hospitality Trust said in its regulatory filing.
The company said the deal had seen it picking up an asset in a ‘prime location in a favourable hospitality market’.
The Sofitel Sydney Wentworth is within walking distance to the majority of Australia’s premium commercial office buildings.
In 2014, hotels in Sydney registered a RevPAR growth of 4.2 percent, making it one of the strongest performing hotel markets in Australia. Sofitel Sydney Wentworth registered occupancy levels of 87.6% and RevPAR of A$193.7 in the year ended 31 December 2014, it added.
The hotel will continue to be operated by the Accor Hotel Group as a Sofitel.