Sydney’s Westend Hotel sale to ignite strong investor interest

​Sydney, 3 February 2015 – Sydney’s Westend Hotel has been listed for sale in a move tipped to ignite strong interest from investors looking to gain a foothold in the tightly held CBD hotel market.

Located at 412 Pitt Street in Sydney’s southern CBD district, the property comprises 86 rooms over 13 levels. Westend Hotel currently operates as a 359-bed backpacker hotel under the Nomads brand.

CBRE Hotels’ Andrew Jackson and Rob Cross have been appointed to sell the property via an Expression of Interest campaign closing March 12.

Mr Cross said the property’s sale represented a truly unique opportunity to acquire a freehold hotel with vacant possession potential.

“Whilst there has been increased activity in the outer Sydney and regional hotel market over the past year, opportunities such as this to acquire a freehold asset in the sought after CBD district are rare,” Mr Cross said.

“Westend Hotel not only benefits from a strong consistent income, but there is huge scope for refurbishment, repositioning and revenue enhancement, which we expect will be just some of the drawcards attracting buyers to this asset.”

Mr Jackson said that the ability to secure the asset with vacant possession would also be a key selling factor.

“Opportunities to secure an accommodation asset in Sydney’s CBD with VP [Vacant Possession] are hard to come by and we expect this in itself will drive strong interest from owner operators and others seeking an opportunity to extend their presence into Australia’s priority investment market [Sydney City],” Mr Jackson explained.

“The property is currently operated as a backpacker hotel by the Nomads Group, who have expressed interest in formalising a long term agreement. However, we also believe many investors will explore the opportunity to capitalise on the strong accommodation market fundamentals and reposition this asset as a limited service mid-scale hotel.

“Located in close proximity to Central Station, World Square and UTS University, this property is ideally positioned to capitalise on the growing patronage of one of Sydney’s already most visited precincts.”

Mr Jackson added: “The property currently trades at occupancies consistently sitting around 81%. The latest ABS data shows the Sydney City hotel market averaging at occupancies of 86.5% and significant RevPAR growth expected for the next 3-5 years”.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.