Bonvests Holdings buys Perth’s Sheraton Four Points Hotel

Perth, 04 August 2015 ​Singapore-listed Bonvests Holdings has confirmed its entry into the Australian market, paying $91.5 million for Perth’s Sheraton Four Points Hotel.

Bonvests is no stranger to the hospitality industry — it owns the Sheraton Towers Singapore Hotel as well as luxury resorts in Tunis, Mauritius, Zanzibar and Maldives but wanted a foothold in Perth.

“The rationale of this acquisition is to continue to build the group’s portfolio of hotels to grow its revenue base in a sustainable manner by adding resilient hotels in gateway cities,” the company said yesterday.

The 4½-star hotel, to be managed by Starwood until 2027, was constructed in 1985 and was recently rebranded to Four Points after a $22m refurbishment. The hotel sits on a 2742sqm freehold site and has 278 rooms. It sold for a rate of about $330,000 a key.

The deal comes in the midst of a transitional period for Perth’s hotel and tourism sector, which is increasingly catering to tourist demand after more than a decade dominated by corporate travel.

“When there’s a strong boom in the mining sector, we usually find that the exorbitant cost of airfares and accommodation deters tourists, but what we’ve seen is a rerating of demand; that tourism is coming back,” said CBRE Hotels director Wayne Bunz, who negotiated the deal with colleague Rob Cross.

Despite the fall in mining investment, Perth’s hotel market is still attracting strong interest from international investors.

American hospitality operator Marriott International recently committed its Ritz Carlton brand to the city. Thailand’s Minor Hotel Group, which owns Australia’s Oaks Hotels and Resorts brand, also has plans to open two Perth properties, AVANI Hotels and AVANI Residences.

“It’s still one of the strongest performing markets in the country and demand is very strong — occupancies haven’t fallen that far; it’s that trading has returned to a more normalised room rate than before,” Mr Bunz said.

The joint venture owners of the Four Points by Sheraton, Singapore’s GIC, which owns 75 per cent, and American hospitality giant Host, which owns the balance, appear to have done well out of the deal.

The joint venture parties bought the property, once known as the Citigat for $61m in 2012 and also refurbished the hotel.

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