Peppers Kings Square in Perth Acquired by Singapore-Based High Street Holdings for AUD $26m
Main Photo: The Peppers Kings Square hotel in Perth, Western Australia
Date: August 2022
Name: Peppers Kings Square…to become Rydges Kings Square
Location: Wellington Stree/Shafto Lane, Perth, WA, Australia
Number of Keys: 120
Seller: A partnership between Mode Development and Hickory Building Systems, managed by Mantra Group (Accor). The hotel opened in 2016, at a cost of AUD$40m
Buyer: Singapore-based High Street Holdings, who recently acquired the Rydges North Sydney
The Singapore investment company behind the recent purchases of Rydges North Sydney and the Kennigo Hotel in Brisbane has added Peppers Kings Square in Perth to it’s fast-growing global portfolio.
High Street Holdings agreed to pay roughly $26 million in an off-market deal for the 18-storey, 120-room hotel, which sits on the corner of Wellington Street and Shafto Lane, opposite Perth Arena.
Opened in November 2016 and previously managed by Mantra Group, the hotel will now be rebranded as Rydges Kings Square.
“We are extremely excited to have completed the acquisition of the Peppers Kings Square Perth,” HSH partner Daniel Yip said.
“The freehold, 120-key hotel is a great value-add opportunity in one of the country’s hottest economies and presents 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.”
CBRE Hotels negotiated the deal.
“Both corporate and leisure travel is recovering throughout the Asia Pacific region, and Perth hotels remain exceptionally well placed to benefit from this,” CBRE head of capital markets WA Aaron Desange said.
“Perth CBD RevPAR (revenue per available room) continues to improve, and CBRE Hotels forecast 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.”
Located a 20-minute drive from Perth Airport, the hotel is based in a prime CBD location.
“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,” Yip said.
Price: AUD 26m
Price per Key: AUD 217k
THPT Comment: Price looks great for High Street Holdings, with a clear expansion plan
First Seen: Business News Australia
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