Sofitel Brisbane Central hotel to be acquired for A$177.7M
The Sofitel Brisbane Central hotel is set to be acquired for A$177.7 million from Brookfield Asset Management, equating to A$427,000 per key.
The hotel will be bought by City Developments Limited (CDL), through its wholly owned hotel subsidiary Millennium & Copthorne Hotels Limited (M&C).
It has also entered a 50:50 Joint Venture (JV) with its New Zealand-listed subsidiary Millennium & Copthorne Hotels New Zealand Limited, for a Purchase Sale Agreement and Business Asset Sale Agreement.
The five-star hotel features 416 rooms, with extensive facilities and will be CDL’s third hotel in Australia.
The strategic investment will give CDL Brisbane’s largest single branded hotel by room inventory. The hotel also boasts the largest hotel conference facilities in the heart of the CBD and direct access to Central Station which leads into retail and commercial districts as well as to Brisbane airport, Brisbane Entertainment Centre, Gold Coast and Queensland in general.
The landmark hotel has exceptional views overlooking the iconic ANZAC Square and is home to Brisbane’s largest hotel event and meeting facility. All in all there are nine meeting and conference rooms that can accommodate up to 1,100 people.
“The proposed acquisition marks the Group’s entry into Brisbane’s hospitality sector. Brisbane is amongst the key hospitality markets in Australia that have enjoyed the strongest RevPAR recovery in 2022, significantly exceeding pre-pandemic levels,’ CDL executive chairman Kwek Leng Beng said.
Brisbane currently has a pipeline of over A$20 billion in infrastructure projects ahead of the
2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029.
“The acquisition presents an attractive opportunity for the Group to enlarge our presence in Australia and enhance our recurring income stream. The Group remains focused on optimising our hospitality portfolio.”
The acquisition is expected to be completed in the second half of the year, with Accor Group to continue management under its Sofitel brand.
Jonathan Jackson, 4th May 2023
