Veriu Group has sought to offload one of its freehold assets to a new investor, engaging Colliers International to bring the property to market.
The boutique hotelier says it is seeking an investor interested in a “premium location and development upside” on the basis of leaseback rights to be retained by Veriu.
The hotel offers 112 rooms and has benefited from the current owner having carried out internal renovations recently, meaning any new owner will not need to put any additional capital expenditure into any purchase efforts. Potential development opportunities are being explored by the current owner, with a view to potentially adding between 42 and 93 extra rooms to the site. The site also includes four other tenancies on the ground and lower ground levels.
“Veriu Central delivers location, a stable income with turnover upside, diversity and development potential – the combination of which makes this an outstanding opportunity,” Colliers International’s Karen Wales said.
Colliers said Sydney was a very tightly-held hotel ownership market, with only two hotels changing hands in 2018 and only 10 selling for under $100 million in the last half-decade.
“The Sydney City accommodation market now comprises approximately 23,553 accommodation rooms and, given the record high occupancy levels, has greater capacity to absorb new rooms,” said Wales.
“Of the supply which will come to fruition, it is worth noting that the vast majority is graded upper upscale or above, meaning that the Veriu Central will continue to be the best located upscale boutique/lifestyle hotel within the Sydney CBD core for the foreseeable future.”