SOLD: Sofitel Adelaide Hotel
CBRE Hotels together with Savills have negotiated the sale of the 251-key hotel on behalf of one of South Australia’s most respected development and construction firms Palumbo Group.
Salter Brothers acquired the multi-award winning Sofitel Adelaide Hotel for approximately $154,000,000.
Located at 108 Currie Street in the heart of the CBD, Sofitel Adelaide is the first internationally branded five-star hotel to be built in Adelaide in 30 years, forming part of a 32-storey mixed use tower with two flexible retail tenancies included.
The hotel is the first asset acquired in Salter Brothers’ Core Hospitality Real Estate Fund (Fund). The Fund focuses on the acquisition of newer upscale and luxury hotels with minimal to no front-end capital expenditure requirements, which are well positioned for broad-based demand across corporate, leisure, domestic and international segments.
Salter Brothers Managing Director Paul Salter said, “We are extremely pleased to acquire this quality institutional luxury hotel asset in one of Australia’s most robust markets.”
“We’re excited about Salter Brothers’ first foray into the South Australian market, which has proven to be a premium events, business and tourism destination. Adelaide accommodation has had an incredibly strong 2023, off the back of a series of amazing sporting events and festivals.”
“Sofitel Adelaide is a luxury hotel with a globally celebrated brand and we will continue to provide a unique guest experience for Australian and international travellers to the city. On behalf of the firm, I would like to thank our advisors, MinterEllison, Ernst Young, CDC Property Consultancy, Nett Zero, Rider Levett Bucknall and Ethos Urban for assisting in the transaction.”
Managed by Accor, Sofitel Adelaide opened in 2021 and consists of 251 guestrooms and suites, Garcon Bleu restaurant, two bars, an indoor swimming pool, fitness centre and health club, a variety of meeting spaces and an executive lounge, Club Millésime.
Sarah Derry, CEO Accor Pacific, said: “We are delighted to extend our partnership with Salter Brothers and the continued strengthening of Accor’s relationship with such a dynamic and successful group. We share a vision and commitment to delivering exceptional experiences for our guests and I look forward to the ongoing success of our collaboration.”
CBRE Hotels Managing Director Michael Simpson noted, “The sale of the Sofitel Adelaide represents Adelaide’s most significant single asset hotel transaction. The developers, who were the vendors in this transaction, literally poured their heart and soul into delivering what is arguably the best internationally branded luxury hotel in Adelaide. We are privileged to have had the opportunity to work with the vendors to negotiate this transaction. The sale of the Sofitel Adelaide has reset the benchmark for the Adelaide luxury hotel market with a record price per key achieved for a CBD asset.”
The acquisition will allow Salter Brothers to capitalise on the significant public and private investment that is currently being undertaken throughout the city.
Mr Simpson said, “We have seen considerable investment activity for the first half of 2023, with the Sofitel Adelaide sale joining a raft of other major institutional transactions we have been involved in, including the Waldorf Astoria Sydney, Novotel & Ibis Melbourne Central and the Sofitel Brisbane, which together exceed $1.2 billion.”
Savills Director Nick Lower added, “The Sofitel Adelaide has earned its reputation and place on the Adelaide skyline as a leading 5-star hotel product, offering unrivalled luxury and exceptional guest experiences. Its presence contributes to Adelaide’s allure as a premier destination, attracting domestic and international visitors alike.”
“The extraordinary record price achieved sets a new benchmark in the Adelaide market, reflecting the property’s exceptional quality and desirability.
“This record-breaking transaction demonstrates the confidence in Adelaide’s hospitality sector and highlights the city’s position as a prime investment destination. The high price per key showcases the value placed on the property, emphasising its distinction in the market and the confidence now being seen in the Adelaide market.”