Canadian giant Brookfield makes $103M bid for the Rydges Sydney Harbour hotel
Canadian asset management giant Brookfield (part of the consortium behind the Mike cannon-Brookes’ AGL acquisition bid) is negotiating the purchase of the Rydges Sydney Harbour hotel for $103 million.
The 176-room hotel was last sold in 2003.
Set in the historic Rocks precinct, the hotel is being sold by Chandru Tolani of New Landmark Hotels, who listed the venue through Colliers late last year with a prospective price tag of around $130 million.
This is a strategic acquisition by Brookfield, with the 55 George St address, giving it a major asset near Circular Quay, the Opera House, the Walsh Bay Arts Precinct, Sydney’s CBD business district and tourism hubs including the Overseas Passenger Terminal.
According to marketing agent and Colliers head of hotels Gus Moors, the hotel appeals to both domestic leisure and corporate markets.
“The hotel has a history of strong performance owing to its unique location with stunning harbour and city vistas from all accommodation rooms. This asset offers investors the potential for tremendous upside through select capital works to reposition for the decade to come, against a backdrop of recovering global tourism,” Colliers stated.
The hotel occupies two buildings over six and eight floors on a 1825 square metres island site, with a 55 metre George Street frontage.
Its guest rooms range from 24 square metres to 77 square metres. The hotel features an event area with panoramic views of Sydney Harbour Bridge and the Sydney Opera House and a roof top pool.
There is a long-term ground lease attached to the premises, with 80 years remaining on the lease.
Vacant possession is available from January 1, 2025.
A done deal would continue to highlight Sydney’s commercial property post-pandemic recovery, following the sale of 29 properties last year worth approximately $1.3 billion.
Irit Jackson, 23rd February 2022
