Three Five-Star Marriotts to be Sold
Commonwealth Property Hotel Fund’s consolidating division, Colonial First State Global Asset Management is to sell three Marriott hotels in Brisbane, Sydney and Melbourne.
The hotels that will be up for sale are the 28-storey Brisbane Marriott acquired in June 2000, located at the Northern End of Queen St and comprising 267 rooms; the 34-storey Sydney Harbour Marriott at the northern end of Pitt St acquired by the fund in April 2001 and comprising 550 rooms and the 186-room Melbourne Marriott on the corner of Exhibition and Lonsdale streets in the theatre precinct acquired in February 2001.
The Sydney Harbour Marriott is the most valuable asset in the portfolio, comprising 58% of its value.
A global marketing campaign exclusively led by Jones Lang LaSalle Hotels Craig Collins and Mark Durran will commence in early 2012.
The hotels were acquired less than ten years ago and the company’s fund manager John van der Wallen said the company used proceeds from the sale of Surfer Paradise Marriott Resort to pay off debt and renovate the hotels. Funds contributed to “extensive refurbishment works to set the remaining hotels up for the sale process”, Mr van der Wallen explained – up to $18 million was used to renovate the Sydney Harbour Marriott while $10 million was spent on the Melbourne Marriott.
In late 2009, the fund sold the Surfers Paradise Marriott Resort & Spa for about $75 million to Indonesia’s Rajawali Group.
“Refurbishment works included upgrading room accommodation, telecommunication and Internet systems in Sydney and Melbourne, upgrading restaurants and bars in Sydney and Brisbane, while the façade and entry to the Melbourne Marriott is currently being improved,” Mr van der Wallen says.
Mr Collins says investor interest in the hotels is strong: “The sale of this portfolio is one of the most anticipated offerings in the Australian hotel investment market for some years. Over the past six months we have been constantly asked by investors when these hotels are coming to market. The time has finally arrived.”
Mr Collins believes the sale of this portfolio will be of particular appeal to major global investors looking for large-scale acquisitions.
Brisbane Marriott Hotel
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