In a sale which dwarfs any single transaction for 2018, the Westin Perth has been bought by Malaysian consortium YTL Group for more than $200 million.
The sale of is the largest ever made in Perth and allows the group to add The Westin Perth to a portfolio of luxury Marriott-managed properties including hotels in Sydney, Melbourne, Brisbane and Kuala Lumpur.
The five-star 28-storey Westin Perth opened in April and straddles Hay Street and Murray Street to the east of the CBD in the city’s heritage quarter.
It features 368 guest suites, spa, pool and gym facilities and 2,300 sqm of convention space, including the CBD’s largest ballroom. The hotel’s restaurant, Garum, is run by celebrity chef Guy Grossi.
The sale of The Westin Perth also includes Hibernian Place, an outdoor plaza with tenanted offerings such as Offshoot by Mary Street Bakery, Arthur & Co., Huxtaburger, Hadiqa, Goody Two’s Japanese Supper Club, and Uber’s WA headquarters. The property has further development potential for a commercial office tower with an existing DA for 36,545 square metres of offices.
“Despite competitive market conditions, The Westin Perth has performed strongly since opening in April 2018, exceeding budgeted performance, reflecting the high quality of the offering,” said Mark Durran, managing director of sale agents JLL Hotels & Hospitality Group.
“Given Perth’s positive future market outlook over the longer-term, major investors are currently seeking quality hotel investments to position themselves for the future market upswing and the income and capital growth that will ensue.”
Developer BGC Group, which built the Westin and the recently sold Aloft Perth, welcomed the sale saying the transactions together freed up more than $300 million in capital.
“We are very proud to have created two of Perth’s best hotel offerings, combining BGC Construction’s commitment to quality with Marriott’s fantastic service delivery,” director Sam Buckeridge said.
Perth has a number of major infrastructure projects currently underway designed to help boost tourism in a state which has struggled to maintain market share against a strong national picture.
They include an $8.5 billion combined investment in the Riverside Project east of the city, the Perth City Link, the Western Australian Museum and Elizabeth Quay worth of approximately $8.5 billion.
Perth International Airport is engaged in a $2.5 billion expansion program and the WA government has earmarked $425 million for investment into destination marketing and event tourism over the next five years.