Australian investment group IProsperity Group has listed the Park Regis City Centre, Sydney for more than $50 million. IPG is accepting expressions of interest until Mar. 13, 2018.
IPG is selling the Park Regis with a management agreement with Staywell subsidiary Park Regis Hospitality Management. The group has appointed Gus Moors and Karen Wales from Colliers International to sell the hotel. Wales claims Sydney's hotel market has seen strong performance in recent months. "The city boasted an occupancy above 88 percent in 2017, with average rate growth of 7 percent year on year–this is the largest increase since Sydney hosted the Olympics in 2000."
IPG is keeping the Park Regis out of its plans to build a $10-billion portfolio. The group doesn't expect the hotel will benefit its new business growth strategy. “The timing is right for IPG to look to sell this asset, under the strategic acquisition plan, as the business matures and we continue on our growth trajectory towards $10 billion of assets under management by 2020," Michael Gu, CE for IPG, told The Sydney Morning Herald.
IPG acquired the hotel in September 2016 for $46 million from StayWell, a Japan-based Prince Seibu group subsidiary. The 122-room hotel is on 10 levels of the 45-level mixed-use tower in the city's central business district. The group also bought the 333 Kent Street, Sydney site that year for approximately $89 million with Staybridge Capital. It plans to redevelop the property into a luxury hotel.
IProsperity Group’s current portfolio has seven hotels across the Crowne Plaza, Intercontinental, Park Regis, Holiday Inn and Novotel brands in Australia. These include the Crowne Plaza Coogee in New South Wales, Crowne Plaza Canberra in Canberra's CBD, Crowne Plaza Melbourne in the city's CBD, InterContinental Melbourne next to Melbourne’s Crowne Plaza, Glen Waverley Novotel in Victoria and Holiday Inn Potts Point in New South Wales.