JLL Hotels & Hospitality Group, in conjunction with Colliers International, have been exclusively appointed to bring to market 410 Pitt Street, Sydney – the only hotel development site in Sydney's CBD formally offered for sale with Stage 1 Development Approval, significantly streamlining the development process.
Envisioned as a 31-storey hotel, the project offers a developable GFA of 4,380sqm and 178 indicative rooms, offering flexibility over internal design, market positioning, brand and operating structure.
This site is arguably one of the last development opportunities of its kind to come to market, as proposed planning controls may restrict development above 55 meters for sites less than 800sqm.
410 Pitt Street represents an opportunity to gain a foothold in Sydney's internationally sought after hotel market. The offering follows a number of site sales, both with and without approvals, that show considerable growth in land value for hotel developments, mirroring the continued growth and positive outlook for hotel trading.
JLL Hotels & Hospitality Group's Vice President, Andrew Langsford, said "Given the limited availability of existing hotels for sale it is expected that the offering will attract strong interest from both local and international investors who acknowledge that the ability to gain a foothold in Sydney is likely to be scarce over the medium term at least."
With a central CBD location on Pitt Street, between Goulburn and Campbell Streets, the proposed hotel is moments from Central Station and the new China Town Sydney Light Rail stop, and has excellent connectivity to the city's major demand drivers for both the corporate and leisure market segments such as Darling Harbour, Chinatown, major corporate offices and the International Convention Centre.
JLL Hotels & Hospitality Group's Executive Vice President, Peter Harper, noted "Rarely is a hotel development opportunity with this scale and certainty offered for sale and with the outlook for Sydney's hotel market remaining exceptionally positive, we are expecting strong interest in this site."
The city has been witness to spectacular trading conditions over recent years, and 2017 is no different with YTD July figures from STR Global reporting 89.4% occupancy at an ADR of AUD 254 – a 7.6% increase over the same previous period, resulting in excellent RevPAR (Revenue Per Available Room) growth of 9.9% from the previous year to reach AUD 227.
Additionally, Gus Moors from Colliers International noted "by successfully securing a Stage 1 Development Approval for the site, the owners have removed the planning risk, thereby allowing purchasers to bid with confidence regarding what can be developed in this location."
410 Pitt Street, Sydney is being offered for sale by way of a public International Expression of Interest ("EOI") campaign closing on Thursday 12 October 2017.
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