Peppers Kings Square in Perth sells for $26 million
Off market acquisition for High Street Holdings will see the Rydges brand return to Perth
High Street Holdings (HSH) had added a third Australian hotel to its portfolio with an off-market acquisition in Perth which is to be rebranded as Rydges Kings Square.
The Singapore investment and asset management company purchased Peppers Kings Square in Perth for circa $26 million to add to its fast-growing global portfolio.
CBRE Hotels negotiated the off-market sale, which represents the third Australian hotel acquisition in 12 months for HSH following Rydges North Sydney and the Kennigo Hotel Brisbane.
HSH partner Daniel Yip said the hotel presented multiple upside opportunities, including a repositioning, the reconfiguration of the hotel’s ground level and meeting spaces as well as the potential to create a multipurpose venue on the rooftop.
He commented, “We are extremely excited to have completed the acquisition of the Peppers Kings Square Perth. The freehold, 120-key hotel is a great value-add opportunity in one of the country’s hottest economies.
“Given the supply and demand dynamics of the Perth hotel market, the hotel’s location and the size of rooms, we are thrilled to strengthen our relationship with EVENT Hospitality & Entertainment (EVT) and bring the Rydges brand back to Perth,.”
The CBD hotel is located directly opposite Perth Arena at 621 Wellington Street and is positioned to capture both corporate and leisure demand. Opened in November 2016, the hotel consists of 120 large and well-appointed guest rooms, a ground-level restaurant, meeting facilities, and a gym.
CBRE’s Head of Capital Markets WA, Aaron Desange said: “Both corporate and leisure travel is recovering throughout the Asia Pacific region, and Perth hotels remain exceptionally well placed to benefit from this.
“Perth CBD RevPAR continues to improve and CBRE Hotels forecasts this growth will climb further into 2023. The West Australian resources sector has multiple large-scale construction projects about to commence which will have a positive downstream impact on the rest of the economy and particularly the lodging market.”
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