Hong Kong-based investment manager Baring Private Equity Asia has struck the biggest single hotel deal in Australian history, securing the Hilton Sydney for around $530 million in a huge sign of confidence in the country’s recovering tourism sector and in the underlying value of CBD hospitality real estate.

The deal, which is subject to a number of conditions, will see BPEA, a subsidiary of global investment giant EQT Partners, take ownership of one of Sydney’s flagship city hotels, acquiring it from Chinese-backed investment vehicle Bright Ruby, which paid $442 million in 2015.