After recently acquiring the Pullman Park Hotel in Melbourne, iProsperity Group (iPG) has announced the sale of its Sydney Park Regis Hotel for $54.18M to the Yeh Group.
The Park Regis was first listed for sale in February, 2018 and identified as being the right time to sell the asset.
The 122-room hotel complex comprises 10 of the 45 level mixed use tower at 27 Park Street, Sydney and represents a 23% increase on purchase price in under 2 years. iPG Group CEO, Michael Gu said: “We identified a clear strategic opportunity to buy the Park Regis in 2016. We predicted income would grow due to market dynamics. This prediction has been realised with favourable net income growth during our ownership.”
“iPG capitalised on this opportunity and chose to divest this highly commercial hotel asset in Sydney’s City Centre.”
Recent refurbishments as well as increased sales and marketing efficiencies, stemming from StayWell, are set to underpin higher average rates at the Sydney hotel.
In its recent ‘Q1 2018 Hotel market analysis report’, iPG predicted buoyancy in the hotel sector will continue for the remainder of the year, with Sydney to experience the highest activity levels and strongest ADRs.
The sale was handled by Gus Moors and Karen Wales of Colliers International. “IPG have combined astute timing and sound business acumen to create substantial uplift in this asset over the period of its ownership.” said Mr Moors.
Settlement is expected on October 31, 2018.