Ipoh Limited has appointed Jones Lang LaSalle Hotels` Mr Mark Durran as exclusive agent to offer for sale one of Sydney`s most profitable hotels, the Hotel Ibis World Square.
The 166 rooms, 3 star hotel opened in 1999 and was purpose designed to deliver superior operational efficiencies and maximum profits. Since opening the hotel has proved to be a consistently strong performer in both weak and strong tourism markets.
The hotel shrugged off the post Olympic tourism lull, September 11 and the Ansett collapse, achieving an impressive 84% occupancy in 2001 and gross operating profit margins in the order of 48%.
According to Mr Durran, Senior Vice President of Investment Sales “Mid market hotels such as the Hotel Ibis World Square should be major beneficiaries of the anticipated recovery in inbound markets as well as the massive contraction in room supply currently occurring in the Sydney market.”
“Of the 16 hotels that have or are being redeveloped for residential apartments, the majority fall into the 3-4 star sector and like the Hotel Ibis World Square are orientated towards the leisure markets, both inbound and domestic” continued Mr Durran. “Looking forward, mid-market hotels are well placed to lead the overall hotel market in terms of revenue per available room growth over the next few years.”
Three new office developments planned in the immediate vicinity of the Hotel Ibis World Square, including The Latitude at World Square Tower, are also forecast to add an additional 116,000 square metres of commercial office space to the vicinity. “This will also stimulate hotel corporate demand in the local area, having a positive impact on the Hotel Ibis World Square`s market mix and average room rate.”
With the resurgence of interest in the Sydney hotel investment market this year, particularly from Asia, the hotel is expected to receive interest from both investors and owner operators alike.
Accor Asia Pacific currently manages the hotel, however vacant possession is available if required.
The Expressions of Interest campaign will close on September 12, 2002. For further information, please contact Mark Durran +61 2 9220 8793.