Singapore's Ascott REIT buys Felix Hotel at Sydney Airport for $61m

Its sale to Ascott will increase the Singaporean hospitality trust’s Australian portfolio to six properties and give it two hotels at Sydney Airport.

The trust already owns the neighbouring Quest Mascot Apartment Hotel as well as the Quest Campbelltown and Quest Sydney Olympic Park, It also owns the Citadines St Georges Terrace Perth and Citadines on Bourke Melbourne.

Its sponsor, The Ascott Limited, owns 80 per cent of Quest Apartment Hotels, the country’s largest serviced apartment operator.

The Felix Hotel, which had been operated by Paul Fischmann’s 8Hotels, will be rebranded as Citadines Connect from May, and managed by The Ascott Limited.

The Felix Hotel is notable for its Mad Men and Catch Me If You Can-inspired interiors and for being at the forefront of new hotel design with amenities like a “grab and go” food and beverage offering aimed at Millennial travellers.

The deal was brokered by Andrew Langsford of JLL Hotels & Hospitality Group who said it highlighted the strong demand for the limited number of quality hotel assets for sale in Sydney.

Ascott chairman Bob Tan said the acquisition of the Felix Hotel would deepen Ascott REIT’s presence in the “stable and resilient market of Australia” and provide a “good yield in the highly sought-after Sydney market”.

“Australia has consistently ranked as one of Ascott Reit’s top contributing markets in terms of gross profit,” he said.

“Ascott Reit will continue to seek opportunities in key markets with strong corporate demand, such as Australia, Japan, Europe and the US to deliver strong yield and growth in distribution income for our unitholders,” Mr Tan said.