$132M deal for the Primus Hotel is the biggest since the pandemic started
Pro-invest Group has signed the biggest hotel deal since the pandemic hit our shores, with its $132 million purchase of the Primus Hotel.
Pro-invest purchased the Primus from Chinese developer Greenland after a $140 million deal with Qatar Airways fell through.
“We are delighted with this purchase as it represents Pro-invest’s first hotel in the Sydney CBD, as well as our first property in the luxury sector,” said Pro-invest chairman and founder Ron Barrott.
Pro-invest will open another five hotels this year and once all projects are completed, including taking over the third-party management of the 194-room Mercure Brisbane and 212-room ibis Brisbane hotels, will manage an impressive portfolio in Australia and New Zealand with over 3000 rooms.
Last year saw Pro-invest raise $300 million for its second Australian Hospitality Opportunity Fund leaving plenty of funds for acquisitions.
“Our second fund is nearly fully deployed now and we are looking around at other opportunities,” said co-chief executive officer Jan Smits who will run the business with Barrott.
Occupancy rates amongst the group’s assets are currently fluctuating, ranging from the mid 20 per cent to around 75 per cent for hotel like Holiday Inn Express in Newcastle.
“We have managed to operate at low occupancy because we operate a very efficient model,” Mr Smits told The Australian Financial Review.
The acquisition is part of an overall investment trend at the moment.
JLL Hotel and Hospitality’s Mark Durran, who negotiated the Pro-invest deal said, “The strong interest fielded in this exceptional hotel asset reflects a huge vote of investor confidence in the Sydney hotel markets long term fundamentals.”
The 297-room Four Points by Sheraton near Central Station is also on the market as owner rich list owner Jerry Schwartz looks to cash up after being hit hard by COVID-19.
Irit Jackson, 17th February 2021
