Co-living, build-to-rent investors eye Radisson Sydney

It is currently the only CBD hotel being offered for sale nationally.

Gus Moors, head of hotels at Colliers International, said he had been surprised by the “huge level of inquiry” since the hotel was put on the market with a $40 million-plus asking price.

“We’ve had interest from Singaporean investors, who are classic counter-cyclical hotel buyers as well as the alternative-use guys including co-living and build-to-rent,” said Mr Moors, who is marketing the hotel with colleague Karen Wales.

The hotel is currently operated by Ausbao under a franchise agreement with Radisson Hotels Asia Pacific, which expires in August 2022.

Early termination of the franchise agreement is possible, Mr Moors said, allowing an incoming purchaser to introduce their own preferred operating structure “a very rare offering in Sydney’s tightly held hotel investment market”.

Ausbao is a subsidiary of Beijing Development Capital Holding, the development and construction arm of the People’s Government of Beijing Municipality. It completed the hotel and apartments in 1998 and has operated them since then.

The hotel was put up for sale four years ago, but withdrawn from the market, despite getting a number of strong offers.

Up for sale are 76 strata freehold serviced apartments, freehold interest in the lobby, restaurant & conference space and freehold interest in eight car parking spaces.

The offering also incorporates leasehold interests in an additional 24 serviced apartments and a further 10 leased car parking spaces.

Mr Moors said the hotel was being sold as Ausbao prepared to open a new 160-room Crowne Plaza hotel and residential tower on the corner of Sussex and Bathurst streets later in the year.

“Ausbao always wanted to own only one Sydney hotel, so the Radisson is superfluous to their needs,” he said.