SYDNEY, 9 August 2022: JLL (NYSE: JLL) Hotels & Hospitality Group has negotiated the transaction of the Hilton Sydney Hotel, the largest single asset hotel deal ever closed in Australia.

The hotel was acquired by Barings Private Equity Asia (“BPEA”) for approximately AUD530 million (USD370 million), and the transaction was advised by members of JLL Hotels & Hospitality Group’s Asia Pacific and Australia teams. 

The Hilton Sydney Hotel offers 587 guest rooms & suites together with a lobby cafe, restaurant, two bars and approximately 4,000 sqm of conference and meeting space. Further amenities include a swimming pool and a large gymnasium operated by Fitness First.

“This transaction is emblematic of the confidence in Sydney’s rapidly recovering hospitality sector and its longer-term investment fundamentals,” said JLL Hotels & Hospitality Group, Australia managing director, investment sales Mark Durran.

“Despite the current headwinds, landmark hotel assets remain highly sought after by global investors. Established hotel assets of this scale and calibre that offer clear asset enhancement opportunities rarely come to market and consistently attract strong global and local investor interest.”

The hotel underwent a multi-million major refurbishment in 2019/2020, which has further increased its prestigious standing and is expected to improve its performance in the tightly-held Sydney 5-star market. Notable works include expanding room count from 579 to 587, along with upgrades to all guest rooms, significantly enhancing the overall guest offering.

This landmark luxury 5-star Sydney CBD hotel features dual street frontages to both George Street and Pitt Street and is located within the Midtown Office Precinct of the Sydney CBD, close to the retail heart of Sydney, as well as a large number of major corporate offices and leisure attractions including the Darling Harbour convention and entertainment precincts.

JLL Hotels & Hospitality Group has completed three of the four largest major hotel sales in Sydney’s CBD since the onset of the pandemic. The Hilton Sydney Hotel transaction follows the recent sales of Primus Sydney for AUD131.5 million (USD92 million) and Four Points by Sheraton Sydney, Central Park for AUD146 million (USD102 million).

The closing of the Hilton Sydney transaction has now more than doubled total settled transaction volumes year-to-date in Australia to approximately AUD750 million. According to the latest STR data, Sydney’s revenue per available room (RevPAR) in the first half of 2021 is up 49.9% compared to last year.