Sold Hotels – The Novotel Sydney Parramatta & The Courtyard by Marriott Sydney-North Ryde
CapitaLand Ascott Trust (CLAS) is divesting two Sydney hotels for $109 million amid continued strong investor activity in the Australian hotel sector.
The Courtyard by Marriott Sydney-North Ryde and Novotel Sydney Paramatta hotels are being acquired acquired by Silversea Investment Pty Ltd in deals which are expected to be completed in 1Q 2024 and 3Q 2024 respectively.
CBRE Hotels’ Michael Simpson and Vasso Zographou negotiated the transactions at a price 5% above CLAS’s book value.
In statement to the Singapore Stock Exchange, Serena Teo, Chief Executive Officer of the Managers of CapitaLand Ascott Trust said, “The divestment of these two properties outside of central Sydney is part of our active portfolio reconstitution strategy. CLAS remains focused on assets that offer better yields and will further uplift the value for our portfolio.”
Part of the divestment proceeds will be used to partially finance CLAS’s acquisition of three prime lodging assets in London, Dublin and Jakarta.
“Australia remains a key market for CLAS. We continue to see strong demand from corporate and leisure guests for our serviced residences and hotels in Australia, boosted by large scale sporting events. Post-divestment, our remaining seven serviced residences and hotels under management contracts will enable us to capture the travel demand while our five serviced residences under master leases will continue to provide us with stable income,” added Ms Teo.
The acquisitions are the latest for Silversea, which also owns the Holiday Inn Sydney Airport hotel at Mascot, The Royal Pacific Hotel at Lane Cove on Sydney’s North Shore and the Mercure Sydney Parramatta.
Mr Simpson said, “The purchase of the CLAS properties represents astute buying, with Novotel Sydney Parramatta positioned to benefit from the increasing importance of the Parramatta CBD as well as the unprecedented growth currently occurring in Greater Western Sydney. Similarly, the Courtyard by Marriott North Ryde will continue to service the ever-expanding Macquarie Business Park which provides a decentralised corporate solution to current work trends.”
Mr Zographou added, “Both will benefit from additions to Sydney’s transport infrastructure such as the Metro, light rail and motorways, which will enhance connectivity to the broader Sydney area. The 2026 opening of the Western Sydney International Airport will provide a further source of demand.”
The Novotel Sydney Parramatta offers 194 rooms, as well as a 350-seat restaurant and lounge, 11 multi-purpose meetings rooms and event space.
The Courtyard by Marriott Sydney-North Ryde offers 164 rooms, a 100-seat restaurant and bar and seven event rooms.
