Main Photo: The Westin Perth
Date: February 2019
Location: East end of Perth CBD, with Elizabeth Quay, the Swan River precinct and Perth Arena nearby, Australia
Name: The Westin Perth – five star
No. of Keys: 368 suites
Seller: BGC Group….who decided to sell The Westin Perth, Aloft Perth and A-grade suburban office tower 25 Rowe together worth an estimated $350 million, in June 2018, in a move timed to capitalise on WA’s economic recovery.
Len Buckeridge, who died in 2014 aged 77, built BGC into a civil contractor, contracting and building materials giant. However, a legal dispute over his estate prompted his heirs to declare they would sell the group, in whole or in part.
The Aloft Perth, a hotel in the Burswood precinct near the newly opened Optus Stadium, was offered with an adjoining A-grade office building 25 Rowe. The Aloft Perth is a 224-key hotel with a 24-hour grab and go pantry, bars and Springs Kitchen, a fitness centre, heated outdoor pool, conference centre and ballroom.
25 Rowe is a nine-storey, 10,409 sqm A-grade commercial office, 80 per cent leased, tenanted by blue-chip tenants including Honeywell and Bunnings with a 509-bay carpark managed by Wilson Parking.
The Aloft Perth and 25 Rowe were built on one block and are on the same title.
Buyer: Malaysia’s YTL Group, in a deal negotiated by JLL Hotels & Hospitality Group’s Managing Director, Mark Durran.
YTL entered the Australian hotel investment market in 2012 with their landmark $415 million purchase of the Marriott Portfolio, also brokered through JLL Hotels & Hospitality Group.
The portfolio included Marriott hotels in Sydney, Melbourne, and Brisbane, and YTL now adds The Westin Perth to their luxury Marriott managed hotels in Asia, the JW Marriott Kuala Lumpur and The Ritz-Carlton Kuala Lumpur.
The 28-storey Westin Perth is one of Australia’s newest 5-star hotels, located to the east of Perth CBD in the city’s heritage quarter.
Straddling Hay Street and Murray Street, the brand new asset is 12km from Perth International Airport and a short walk to Perth’s commercial offices, Hay Street Mall, Perth Exhibition & Convention Centre, and in close proximity to Royal Perth Hospital.
Having opened recently in April 2018, the hotel features 368 large guest suites and 2,300 square metres of convention facilities, including the CBD’s largest ballroom.
The hotel’s signature restaurant Garum, helmed by Melbourne celebrity chef Guy Grossi, has been an outstanding success since opening. Other facilities include a fitness studio, infinity edge outdoor swimming pool, and award-winning Australian spa Bodhi J.
The sale of The Westin Perth also includes Hibernian Place, offering an outdoor plaza of 2,000 square metres with notable F&B tenants such as Offshoot by Mary Street Bakery, Arthur & Co., Huxtaburger, Hadiqa, Goody Two’s Japanse 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 premium Grade-A office.
“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 Mr Durran.
“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”, he added.
This follows the announcement in November regarding the sale of Aloft Perth to Hiap Hoe Ltd. Like the Aloft, the Westin will continue to be successfully managed and operated by Marriott International, maintaining the same team and the same high standard of service.
BGC director Sam Buckeridge said the Board was pleased with the strong interest shown by potential buyers and the outcomes achieved in relation to both hotels, freeing up in excess of $300m of Capital for re-deployment by the BGC Group.
“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,” Mr Buckeridge said.
The transaction is expected to complete in the first quarter of 2019.
Perth has a number of world-class infrastructure projects that are underway which will broaden the city’s appeal including Riverside, Perth City Link, Western Australian Museum and Elizabeth Quay at a combined worth of approximately $8.5 billion.
The sale of the hotel follows a number of major landmark hotel transactions in Australian gateway cities, most recently the sale of the Four Points by Sheraton Sydney Central for $156 million and the Sheraton Melbourne in late 2017, both deals brokered by JLL Hotels & Hospitality Group.
Price: Thought to be around AUD$200m
Price per Key: AUD$543,478
THPT Comment: Interesting activity in the top-end hotels in Perth/Australia, with hotel just opened in April 2018.
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