KSL Capital Partners Acquires Four Points by Sheraton Sydney, Central Park
Main Photo: Four Points by Sheraton Sydney, Central Park
Date: October 2021
Name: Four Points by Sheraton Sydney, Central Park
Location: Sydney, Australia
Number of Keys: 297
Seller: Hotel mogul Dr Jerry Schwartz, who acquired the hotel in November 2018 for AUD$156m
Buyer: KSL Capital Partners, LLC
KSL Capital Partners, LLC announced today that an affiliate of KSL has acquired the Four Points by Sheraton Sydney, Central Park for an undisclosed amount. It will continue to be operated by Marriott International under the Four Points by Sheraton brand. While KSL has already invested in Ballie Lodges in Australia, this is KSL’s first investment in Sydney.
The hotel opened in late 2018 and was reported to have changed hands back in May 2021, but only formally announced this week. Whilst officially ‘price undisclosed’, the reports the price tag to have been in the AUD$150 million ballpark, with the sale facilitated by JLL Hotels and Hospitality Group Managing Director, Mark Durran.
The hotel marks the first investment by KSL Capital Partners affiliates in Sydney and builds on a strengthening portfolio the company is cultivating in this market, which also includes a major stake in Baillie Lodges. The company also owns Outrigger Hospitality Group, which it purchased in 2016.
KSL Capital Partners, LLC is a private equity firm specialising in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate and travel services. KSL has offices in Denver, Colorado; Stamford, Connecticut; London, England and Singapore. Since 2005, KSL has raised approximately USD $15 billion of capital across both equity, credit and tactical opportunities funds. KSL’s current portfolio includes some of the premier properties in travel and leisure.
The Four Points by Sheraton Sydney, Central Park features 297 guest rooms, including 45 suites. Amenities include a bar, restaurant, fitness center, 50 dedicated car parking spaces and over 500 sqm of conference and meeting space. Planned capital improvements include repurposing existing meeting space and enhancing food & beverage concept offerings. The property is strategically located at 88 Broadway, Chippendale NSW and forms part of the Central Park mixed-use development, adjacent to Sydney’s emerging “Silicon Valley”.
It is within close proximity to a number of major corporations, University of Technology Sydney, the vibrant Chinatown, Surry Hills, University of Sydney, University of Notre Dame, and the Darling Harbour convention and entertainment precinct. The hotel is served by Central Station, one of the main public transport hubs in Sydney for trains, buses, the recently opened light rail and the forthcoming metro currently under construction. The buyers were advised on the transaction by Levy Real Estate.
Price: AUD$150 million (unverified)
Price per Key: AUD$505k
THPT Comment: The hotel is in a part of Sydney which will see significant redevelopment in coming years as the inner-city precinct evolves to become what the state government plans will be an Australian ‘Tech Central’, home to established and emerging technology innovators. Interesting sales price, compared to the acquisition price in 2018.
First Seen: Urban Developer
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