Snapping up waterfront hotels
Hong Kong’s Ovolo Group, part of Hind Hotels & Properties, bought the 1888 Hotel through Wayne Bunz and Rob Cross of CBRE in a $33 million deal revealed by The Australian last week.
But the group is not stopping there.
“We continue to look at new acquisitions in the Australian market to grow the Ovolo brand,” said Ovolo founder and chief executive Girish Jhunjhnuwala.
Sources said the group was close to going unconditional on the Taj hotel in a deal worth between $40m and $50m.
Once branded a W Hotel, the property has been on and off the market since Taj bought the hotel in late 2005 for $36m, rebranding it the Blue Sydney.
It is understood Jones Lang LaSalle Hotels managing director Mark Durran is advising Taj but he declined to comment yesterday.
Meanwhile, Mr Jhunjhnuwala said the purchase of the 1888 hotel at Pyrmont provided a unique opportunity to enter the Sydney market.
“In terms of design and positioning, the hotel represents a perfect fit for our group portfolio.”
Hotel 1888 was built by Michael Teplitsky and Darren Williams with design inspiration from Paul Fischmann, founder of 8Hotels.
Mr Fischmann said the property, which opened nine months ago, had been one of the most successful hotels he has been involved in from design and construction through to launch. It was sold with a long-term management contract to 8Hotels.
The boutique hotel occupies a refurbished wool store built in 1888, incorporating 90 guest rooms on the fringe of the CBD.
Ovolo operates the lifestyle hotel Ovolo in Little Bourke Street in Melbourne as well as a strong network of hotels in Hong Kong. Earlier this year Ovolo bought The Oaks on Lonsdale in Melbourne as part of an aggressive brand expansion.
Mr Bunz said more Asian and Chinese capital was destined for Australia.
“There is a much wider buyer pool than we have seen historically for Australian hospitality assets.”
CBRE is marketing more than $200m of hotels.
“It is very much a sellers’ market at present,” Mr Bunz said.
Source: The Australian - 5 June 14
