Big news from Down Under: One of Sydney's top harbourside five-star hotels, the Four Seasons Hotel Sydney, has been sold for AU$340 million (approximately US$306.8 million) to Mirae Asset Global Investments, a Korean company. The hotel was jointly marketed by Jones Lang LaSalle's Hotels & Hospitality Group and McVay Real Estate on behalf of Eureka Funds Management. The purchaser, Mirae Asset Global Investments, is one of the largest financial institutions in Korea. Locally, Mirae Asset's investment into the hotel will be managed by Millinium Capital Managers, a Sydney-based firm.
Craig Collins, CEO of Jones Lang LaSalle's Hotels & Hospitality Group, Australia said, "The sale of the Four Seasons Hotel Sydney is a milestone transaction for the industry as it represents the debut hotel acquisition of a major five-star Australian hotel by a Korean-based entity."
The hotel overlooks the Sydney Harbour Bridge and Opera House at Circular Quay, and underwent an extensive AU$45 million (approximately US$40.6 million) dollar renovation program over recent years, including the addition of a new restaurant, bar and conferencing facilities.
Glen Boultwood, Fund Manager of Eureka Funds Management, commented, "The repositioning of the Four Seasons Hotel Sydney is a great case study on how, through collaboration between hotel owner and operator, great change can be implemented at a hotel to maximize returns for both parties."
Sydney continues to be Australia's top hotel investment market, accounting for circa 60 percent of the total transaction volume so far in 2013 including the sale of the Ibis King Street Wharf, Diamant Sydney, Mercure Potts Point and Ritz Carlton Double Bay, with more deals expected to occur before the end of the year.