Imagery © Hilton.
The landmark Sydney Hilton is heading for refurbishment after changing hands as part of the largest-ever single asset transaction in the Australian hospitality sector.
Baring Private Equity Asia (BPEA)’s real estate fund completed the acquisition of the five star site for A$530 million (US$370 million) from Singapore-based investor, Bright Ruby. The transaction was negotiated through JLL Hotels & Hospitality Group.
Significant investment
BPEA Real Estate is now planning significant investment into the hotel, including upgrades and expansion to guestrooms and F&B outlets, enhancements to the front and back of house operations, and implementing ESG-related initiatives.
Sydney Hilton houses 587-rooms in the heart of Sydney’s CBD and boasts extensive events and conferencing facilities, as well as award-winning food and beverage offerings and luxury retail outlets. The hotel has been at the centre of Sydney’s hospitality sector since its construction in 1974.
Next chapter
BPEA Real Estate’s head of Australia, Paul Gately, commented: “We are excited to be a part of the next chapter of one of the most famous hotels in Australia. The Sydney Hilton is an iconic hotel, well-known to business and leisure travellers alike, while its restaurants, bars, and conference facilities have played host to Sydney locals for years.
“Quality assets in prime locations like the Sydney Hilton are tightly held and don’t become available often, so it’s a great opportunity for the BPEA Real Estate team. We have a strong conviction about the long-term outlook for Australian real estate and are excited about the potential of finding similar opportunities across a variety of sectors.”
Eric Siegel, regional head of hospitality, BPEA Real Estate, added: “The Australian hospitality market has rebounded much faster than many people expected. We see a lot of pent-up demand from domestic and international travellers and now have one of the prime five-star lodging assets in Sydney’s CBD to capitalise on that demand. We see a long runway for further hospitality-related investments, not just in Australia but throughout the Asia Pacific as more barriers to travel continue to fall and countries open up.”
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Hilton Worldwide is a leading global hospitality company with a portfolio of brands spanning more than 6,000 properties around the world.
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