JPJ Properties Pty Ltd (“Vendor”) to offer for sale, on a confidential basis, the Quality Hotel CKS Sydney Airport (the “Hotel”, “Property” or “Asset”) located at 33 Levey Street, Wolli Creek.
The Quality Hotel CKS Sydney Airport has recently undergone a comprehensive $3 million (approx.) design focused renovation and features 121 modern and well-appointed guest rooms, a restaurant & bar, two conference rooms and extensive car parking.
It also occupies a substantial 5,150sqm freehold site with three street frontages which offers a number of long term expansion and redevelopment options due to favourable zoning provisions.
The Property is strategically positioned to benefit from Sydney Airport, Australia’s busiest airport which catered to around 39.7 million passengers in 2015 and is forecast to receive around 74.3 million passengers by 2033. Notably, Sydney Airport has committed to further enhancing the T1 International terminal which is less than 1.5 kilometers from the Hotel.
Quality Hotel CKS Sydney Airport also offers excellent connectivity to the iconic Sydney CBD and its key tourism accommodation demand generators together with the surrounding established commercial, industrial and logistics precincts of Mascot, Alexandria and Port Botany.
The Hotel is currently operated under a hotel management agreement with The Lancemore Group, one of Australia’s leading boutique hotel operators, and a franchise agreement with Choice Hotels Australia.
Since the refurbishment and rebranding activities in 2014, the Hotel has performed well however there is scope for further improvement in occupancy and rate. With RevPAR growth in the Sydney Airport Hotel precinct of 10.3% in 2015 and 9.4% for year-to-date February 2016, the trading outlook is very positive.
This sale represents a rare opportunity to enter the Sydney hotel investment market through an asset with excellent business and real estate fundamentals, together with sizeable future redevelopment potential.