Pyrmont hotel snapped up for $29m

A family has snapped up a hotel in Murray Street, Pyrmont, for $28.7 million from IGB and has the opportunity to reposition the asset and appoint a new operator.

Located at 131-133 Murray Street, the 100 per cent freehold property sits on a 280 square metre site, with a nine-level building comprising 60 guest rooms and suites, together with front and back of house facilities.

The hotel was sold unencumbered by management, leaving it with flexibility over the eventual market positioning, brand and operating structure. With a gross floor area of about 1134 sq m and B4 Mixed Use zoning, the height limit is about 28.87 metres.

A 60-room hotel at 131-133 Murray Street, Sydney, has sold.Credit:

The hotel was sold by Jordan Lee, Andy Hu and Michael Simpson, of Savills Australia.

Mr Lee and Mr Hu said Pyrmont is a primary choice for those who like to be close to their CBD-located clients but would like themselves to be out of that environment.

The sale comes as hotel sector transactions have been relatively subdued.

Mr Simpson said despite having seen some very low transaction volumes in the Sydney hotel market for some time, "quality offerings like this continue to attract interest from domestic and global capital which has been unsatisfied due to a shortage of available investment-grade hotels for sale in Australia".

"This year, we expect to see owners taking advantage of these market dynamics and seek to realise some profit on their hotel holdings," Mr Simpson said.

But hotels are also being impacted in the short term by the bushfires over summer than deterred some overseas visitors and the coronavirus.

Tourism Accommodation Australia (TAA) NSW chief executive Michael Johnson said the industry group was working closely with the state and federal government on the travel ban issue.

"Our tourism bodies are doing all they can to redirect resources to mitigate the fallout and ensure we entice travellers in new and existing markets," Mr Johnson said.

"There are uncertain times ahead but we are a resilient industry."

Source: Read Full Article