The Rydges Sydney Harbour hotel, located in the city’s historic Rocks precinct, has sold to the Crystalbrook group.
The hotel occupies an 1,825 sqm site, and sits on a long-term ground lease to Place Management NSW.
The 176 rooms were spread across two buildings, including an 8 storey heritage building and a 6 storey 1980’s development, which created an imposing atrium lobby flooded with natural light from its glass ceiling. The hotel also features a rooftop pool with panoramic views of Sydney Harbour Bridge and the Sydney Opera House.
Crystalbrook’s CEO, Geoff York noted “our group has been seeking a Sydney flagship property to compliment our growing portfolio. The prime location, coupled with an ability to reposition the property to our demanding design standards, made this an ideal acqusition for us.”
The vendor was New Landmark Hotels, which have held the property since 2003. The partners of New Landmark are Chandru Tolani, Jack Tolani and David Rickards. Chandru Tolani noted “the Rydges Sydney Harbour is one of the city’s best located hotels, showcasing many of the icons that make the city so famous. We have enjoyed great success with the hotel throughout our ownership period, but feel the time is now right to pass the baton onto a new group, who can re-imagine the future for this special property”.
The sale was negoatied by Colliers’ Gus Moors, Karen Wales and George Hudson. Pricing guidance throughout the campaign was “around $100 million” and it is understood that the hotel transacted at or around this level.
“This property offers amazing upside, given its location, and we are excited about the plans Crystalbrook have for the property. This sale represents ongoing investor confidence in the Sydney hotel market, which is showing excellent signs of recovery.” said Mr Moors.
The property will continue to be operated by Event Hotels and Resorts under the Rydges brand for the foreseeable future, until Crystalbrook consolidates its vision to reinvent the hotel.