Prized Sydney Stamford Hotel up for grabs
Developers are clamouring to secure the prized Sir Stamford Circular Quay near the Sydney Opera House.
Mirvac and JDH Capital, along with three other major players, have expressed interest in the hotel, part of Singaporean tycoon CK Ow’s Australian and New Zealand hospitality portfolio.
The portfolio is likely to be split, with the Stamford representing an opportunity to capitalise on Sydney’s luxury apartment boom.
Developers would maintain the sandstone façade but convert the landmark hotel on Macquarie St into a top end apartment block.
The Singapore-listed Stamford Land Corporation’s portfolio is spread from Sydney Airport to the Auckland CBD and encompasses 1569 rooms.
Mr Ow is seeking to sell the entire portfolio, however, is open to selling some hotels could separately.
Mr Ow’s Stamford portfolio could fetch over $1 billion.
All six hotels are being offered by Stamford with vacant possession after 25 years of local investment.
It is believed the five other Stamford hotels are being courted by international heavyweights including Gaw Capital and Brookfield.
However, Salter Brothers’ new Australian hospitality sector joint venture with Singaporean sovereign wealth fund, GIC and private markets firm, Partners Group, showing interest could also be in the mix.
This largely CBD based portfolio has suffered tremendously due to the pandemic, which saw Sydney city hotel occupancies plunge from over 90 per cent to around 30 per cent.
However, when domestic travel resumes and international borders re-open, buyers expect to see these numbers rise quickly.
Irit Jackson, 19th August 2021
