One of Sydney Harbour`s finest jewels, the luxurious Park Hyatt Sydney, is to be offered for sale. US-based owners Maritz, Wolff & Co. have appointed specialist global hotel broker Jones Lang LaSalle Hotels to run the expressions of interest campaign.
Regarded as one of Australia`s most prestigious hotels, the 5 star Park Hyatt Sydney boasts an exceptional location on the edge of Sydney Harbour. “The property benefits from unrestricted views over Sydney Harbour, Opera House and Circular Quay, providing the hotel with a significant competitive advantage in the local and global marketplace” said Mr Geordie Clark, Executive Vice President of Jones Lang LaSalle Hotels. “Scarcity of land and high development costs serve as serious barriers to entry and are likely to ensure that there will be little chance of replicating this icon.”
Since opening in 1990, the hotel has achieved Australia`s highest average daily rate (ADR) whilst maintaining relatively high occupancy levels. “Given the secure performance of the hotel, the offering could attract the interest of non-traditional hotel investors, in addition to high net worth individuals and 5 star hotel owner operators” said Mr Clark.
The sale coincides with a period which is widely regarded as the bottom of the hotel performance cycle in Sydney. The combined factors of anticipated demand growth, significant closure of hotels for residential development and no planned new supply should ensure a strong growth in performance over the next few years.
The architecturally distinct Park Hyatt Sydney comprises 158 guestrooms, conference facilities, a renowned restaurant and two bars, a health club and car parking for 77 vehicles. Since its opening in 1990, Hyatt International has managed the property under contract.
Marten Foxon, the UK-based Managing Director of Maritz, Wolff & Co., said “Our investment in the Park Hyatt Sydney has been particularly successful, and we are proud to have been associated with such a prestigious asset. We have decided to sell our interest in order to take advantage of favourable market conditions and concentrate our resources on further investment opportunities throughout the world, including the Asia Pacific region”.
Maritz, Wolff & Co. is a US-based investment fund specialising in 5 star hotel real estate. In addition to the Park Hyatt Sydney, it owns such world renowned assets as the Carlyle in New York City, the Four Seasons Hotel and Resort in Nevis, St Kitts, the Mansion on Turtle Creek in Dallas and the Four Seasons, Toronto. It also has a 50 per cent interest in the ultra-luxury hotel operator, Rosewood Hotels and Resorts.