Sydney, May 22, 2003 – The 4 star Pentura on Pitt Hotel Sydney has been sold for A$16.5million to a local investment syndicate. The deal was negotiated off-market by Mr Mark Durran, Senior Vice President, Jones Lang LaSalle Hotels on behalf of Topland Property Pty Ltd.
In a strong vote of confidence in Australia’s hotel and tourism sector, a local syndicate of investors led by Wall Street Travel Managing Director Mr Ben Caplan and Hotelier Mr Rajeev Dani has purchased the property.
The 119 room hotel is located in the heart of Sydney at 300 Pitt Street, near the corner of Bathurst Street. The property includes a leased restaurant/bar and vacant basement area.
Since opening in 1999, the hotel has been owner operated and was sold with vacant possession. The property will be rebranded a Metro hotel and operated under a management agreement with Metro Hospitality Group. Metro Hospitality Group is also taking a 30% investment position in the property.
Mr Caplan said “we are counter cyclical investors and together with our partner Metro Hospitality Group, we intend to reposition and improve the hotel’s operation from a tourist to predominantly corporate business hotel”.
Mr Durran added “despite the multiple challenges the industry has faced in recent months, investor interest in Sydney hotels remains quite buoyant. Most investors in the marketplace at present look beyond short-term market fluctuations and tend to take a longer-term view on a hotel investment. Investors continue to be attracted by the resilience of the Australian economy, relatively low interest rates, a currency which is still attractive to offshore investors and most importantly, longer term Sydney hotel market fundamentals which are positive due to the substantial and continued reduction in room supply.”
Jones Lang LaSalle Hotels, the world’s leading hotel investment services group, provides clients with value-added investment opportunities and advice. In 2002, its success story includes the sale of 6,747 hotel rooms to the value of US$862 million in 36 cities and advisory expertise on 116,877 rooms to the value of US$17.8 billion across 170 cities. Jones Lang LaSalle Hotels’ services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. Jones Lang LaSalle (NYSE: JLL) is the world’s leading real estate services and investment management firm, operating across more than 100 key markets on five continents.
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