SITE AREA: 309.8 sqm
ZONING: B8 – Metropolitan Centre
TITLE & TENURE:
Lot 1 in Deposited Plan 71333
Lot 1 in Deposited Plan 55298
GROSS FLOOR AREA: 1,930sqm (approx., after renovation)
ACCOMMODATION: 50 guest rooms and suites
RATING: 3 Star
A landmark hotel in Sydney CBD
The hotel presents an outstanding opportunity to secure a freehold hotel in the heart of Sydney CBD that benefits from outstanding asset fundamentals and market dynamics.
The Hotel is set to capitalise on its strategic proximity to the city’s key business precincts, Darling Harbour, the new International Convention Centre, and Barangaroo – Sydney’s largest urban renewal project.
Originally built in 1938 as ‘Shorter House’ to present and store English Artisan Porcelain, the Property is designed in the inter-war Art Deco architectural style showcasing elegant polychromatic textured brickwork and the use of parallel line motif in the parapet wall.
The Hotel is set to build upon its historically strong trading performance, capitalising on an improved guest experience, the outstanding outlook for the Sydney hotel market and the continuing evolution of the local precinct.
The Hotel is offered for sale with the benefit of Mantra Group management yet vacant possession is available for the incoming owner.
EXCEPTIONAL REAL ESTATE FUNDAMENTALS
The Hotel offers a diverse suite of highly sought after asset and business fundamentals including a truly international gateway city, prime CBD location and freehold tenure.
CENTRAL SYDNEY CBD LOCATION
Located in the heart of Sydney CBD, the hotel is within proximity to the city’s globally renowned tourism demand generators. The Hotel will benefit significantly from the imminent realisation of the Barangaroo precinct – the 22 hectare development that will revitalise a dormant part of the city and generate up to 535,000 square metres of commercial, residential and retail space. The Hotel is also close to International Convention Centre, a new $1.1 billion facility that will offer over 35,000 square metres of exhibition space and a convention capacity for 8,000 delegates. This world-class asset will re-establish Sydney as one of the world’s most desirable conference destinations.
There is a proposed capital work program including reconfiguration and refurbishment of rooms, adding new food & beverage venue, as well as enhancement to other front and back of house areas. Undertaken by leading Australian construction and architecture firms, these improvements will rebrand the asset into an iconic hotel which is anticipated to deliver increased market penetration and profitability.
STRONG MARKET DYNAMICS
The development pipeline of new hotels in Sydney’s CBD has been highly constrained in recent years, which is likely to keep the demand versus supply equation in favour of hotel owners. Sydney is one of the most sought after hotel investment markets in Asia Pacific. Heightened transaction activity over the past three years will limit the opportunities to gain an investment foothold in this market over the medium term.
The hotel is located prominently on Clarence Street with a right of way via Kent Street, approximately 20 metres from the corner of King Street. This excellent location is ideally positioned to take full advantage of established amenity in the immediate area including Martin Place, Wynyard Station, Pitt Street Mall, Westfield Sydney—the city’s luxury retail precinct—and all of Sydney’s major tourism precincts including The Rocks and Sydney Harbour. As Australia’s largest city with a population of approximately 4.8 million residents, Sydney is recognised as the nation’s gateway city. Sydney contributes between 25%-30% of Australia’s total economic activity and is home to more than 500 multinational companies running their Asia Pacific operations from the city. Sydney is widely regarded as a regional financial hub with particularly strong representation from the finance, property and legal sectors. The city is frequented by more tourists than any other destination in Australia and heralded internationally for key attractions including the Sydney Opera House & Harbour Bridge as well as its close proximity to iconic natural demand generators including Bondi Beach. The city is currently experiencing a major infrastructure boom, with much of the investment set to boost the tourism economy. The CBD Light Rail, which will be completed in 2020, will transform Sydney’s civic spine and greatly enhance the public amenity.
The Property is only a short distance from the two largest infrastructure projects currently being undertaken in Sydney – Barangaroo Redevelopment and the International Convention Centre. The development of the 22 hectare Barangaroo precinct will revitalise a dormant part of the city and generate up to 535,000 square metres of commercial, residential, and retail space. Meanwhile, the International Convention Centre, the new $1.1 billion tourism infrastructure project, will offer over 35,000 square metres of exhibition space and a convention capacity of 8,000 delegates. This world-class asset will re-establish Sydney as one of the world’s most desirable conference destinations.