CDL to acquire Sofitel hotel in Brisbane for A$177.7 million
Michelle Zhu
CITY Developments Limited (CDL) is acquiring an 87.9 per cent effective group interest in Australia’s Sofitel Brisbane Central hotel for A$177.7 million (S$159.2 million), which translates to about A$427,000 per key.
Through CDL’s wholly-owned subsidiary Millennium & Copthorne Hotels (M&C) and in a 50:50 joint venture with its New Zealand-listed subsidiary, M&C New Zealand, the group will acquire Sofitel Brisbane Central hotel from Brookfield Asset Management, a New York-listed investment management company.
The hotel will continue to be managed by the Accor Group under its Sofitel brand following the deal’s expected completion in the second half of 2023.
Sofitel Brisbane Central is a five-star, 30-storey luxury hotel comprising 416 rooms and suites, as well as nine meeting and conference rooms that can accommodate up to 1,110 people.
The property comes with a land tenure of 99 years from May 25, 2021. It is directly linked to Brisbane’s Central Station, and is also within walking distance of key attractions such as Queen Street Mall and Eagle Street Pier.
Sofitel Brisbane Central marks CDL’s third hotel in Australia and also represents the property group’s entry into Brisbane’s hospitality sector.
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Highlighting Brisbane’s strong RevPAR (revenue per available room) recovery over 2022, along with the city’s confirmation as host for international sporting events in the years to come, CDL’s executive chairman Kwek Leng Beng said he considers the acquisition an attractive opportunity for the group to expand its presence in Australia while enhancing its recurring income stream.
“Brisbane’s pipeline of over A$20 billion in infrastructure projects will further enhance the city’s position as a world-class sporting, tourism and business events destination,” said Kwek on Wednesday (Mar 22).
CDL’s development projects in Australia include Brickworks Park and Treetops at Kenmore, which are both in Brisbane.
The group’s real estate investment trust associate, CDL Hospitality Trusts, also owns two hotels in Australia – Mercure Perth and Ibis Perth.
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