Sydney boutique hotel portfolio could fetch $70m
A portfolio of four hotels on Sydney’s lower north shore is being offered by the owner and operator, Emerald City Hotel Group, with price expectations of up to $70 million.
Located in Cremorne, Mosman and Kirribilli, the sites are boutique hotels that have been restored by the owners, who are now moving onto other projects. There are a total of 142 rooms and all have heritage components.
The package bundles the budget accommodation offerings of Dalziel Lodge in North Sydney and Glenferrie Lodge in Kirribilli with the higher-positioned operations of Cremorne Point Manor and The Albert in Mosman.
The Albert is the latest addition to the Emerald City portfolio after a $12 million restoration of the heritage property transformed it into Sydney’s newest 5-star boutique hotel, offering 26 suites.
Founder of the Emerald City portfolio Jean-Claude Branch said “there is something special about restoring a heritage site and breathing new life into it”.
“All four hotels were a result of positive engagement with the north shore community and a lot of blood, sweat and tears,” he said.
The sales come as smaller hotels remain active despite the fall-off in tourism owing to the COVID-19 pandemic. While vacancy rates have dropped, local tourists are still visiting sites in their own cities.
CBRE Hotels’s director Tom Gibson, Raymond Tran, Vasso Zographou and Michael Simpson are undertaking the sale either in one line or individually.
The owner-operated portfolio includes a mix of hotels, ranging in size from 16 rooms to 70 rooms and each of the properties presenting short- to medium-term repositioning opportunities, including brand conversion and residential development.
Mr Gibson said the sale campaign presents a strategic opportunity to enter the Sydney boutique accommodation market with a platform offering scale, diversification and repositioning upside.
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Carolyn Cummins is Commercial Property Editor for The Sydney Morning Herald.
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Source: Thanks smh.com