Sydney Airport hotel expected to sell for circa $270M

In what could turn out to be 2021’s biggest single transaction, Sydney property investors Phil Wolanski and David Baffsky are listing The Rydges Sydney Airport Hotel for sale as a vacant possession.

The eight year old, 318 room hotel which is located 100m from the international terminal, is being sold by CBRE Hotels’ Wayne Bunz and JLL’s Mark Durran.

The sale could fetch around $270 million.

A number of off-market offers from people such as John Landerer have already been received.

“On-airport hotels are expected to be an immediate beneficiary of the rebound in international travel and this particular property will continue to command a significant rate premium over competing hotels located further afield,” Wayne Bunz said.

“The asset has had an enviable historical track record for superior trading performance, with occupancies significantly higher than the Sydney average and most CBD hotels. This is the only hotel at an airport terminal in Sydney and we expect it to command a premium price.”

According to Mr Durran, the hotel had been well managed under its Rydges brand by Event Hospitality.

“(But) vacant possession can be obtained, providing owner-operators and alternate management companies with substantial brand exposure,” he said.

“Prime investment-grade hotel assets in strategic locations such as the Sydney Airport precinct, particularly those offering vacant possession, are highly sought after and prices remain solid.”

The Rydges Sydney Airport Hotel is being offered for sale via an expression of interest campaign ending on May 31.

Irit Jackson, 22nd April 2021