Hotel mogul puts budget hotel on the market

COVID-19 has impacted hotel mogul Jerry Schwartz, forcing him to sell one of his Sydney CBD properties.

The Ibis Sydney King Street Wharf, which was purchased in 2013 by Mr Schwartz for $24 million, is rumoured to be on the market for $50 million.

For the past six months, Mr Schwartz has been re-evaluating his 15-hotel portfolio and late in 2020 called for expressions of interest in the Four Points by Sheraton Sydney, Central Park.

The luxury hotel was originally tipped to be sold for $180 million.

It is said that due diligence is now being conducted by a potential buyer on the 4.5-star Sheraton property.

In relation to his other hotels, there’s no official word from Mr Schwartz, but it is understood that his regional and leisure hotels are doing well and are not in any threat of being sold.

There’s still a very low number of people looking to stay in hotels in Sydney’s CBD, which used to be filled with business and international travellers.

Australians from other states are also reluctant to leave their own states in case a sudden lockdown and border closures are enforced.

However while numbers are low, according to industry analyst Matthew Burke from STR occupancy rates are slowly bouncing back, hitting 47% in March.

Irit Jackson, 30th March 2021