Qatar Airline looks to purchase Sydney hotel

Sydney’s Primus Hotel on Pitt St might be purchased by Middle Eastern airline Qatar for close to $140 million.

The Chinese company that developed the 172 room hotel, Greenland Australia said the

“opportunity has received a strong interest from the market, several short-listed parties are currently undertaking their due diligence.” 

Mark Durran of JLL Hotel and Hospitality is advising on the transaction saying that the Primus Hotel is the first major five-star Sydney hotel to be offered in many years. 

The sale of this hotel could act as a guide to future transactions, while also opening up the local market to overseas investors. 

Thaliand’s Savetsopmphob family has already been active snapping up Vibe Hotel’s in Melbourne and Sydney. 

After being active in Australia for some time, Qatar Airways expanded its international hotel portfolio in 2018 by buying the landmark Sheraton Melbourne for about $135 million.

The airline could look to make the Primus into a Westin hotel, but has so far declined to comment.

Sales activity in the sector is picking up, with the Mirvac and NRMA Tucker Box Hotel Group joint venture on offer at around $600 million.

The AccorInvest hotel portfolio which has around 23 hotels is also back on the market.

Any sales must consider the closure of international borders,  lower demand for business travel and Sydney’s gateway city status being compromised.