CK Ow’s Stamford makes $1 billion portfolio move as hotels hit block

Singaporean tycoon CK Ow has tipped the bulk of his Australian and New Zealand hospitality portfolio on the market.

The Sir Stamford hotel at Circular Quay, Sydney, is one of CK Ow’s prized assets hitting the market.

Singaporean tycoon CK Ow has taken the unprecedented step of tipping the bulk of his Australian and New Zealand hospitality portfolio on the market, offering six hotels as vacant possession after a quarter of a century of local investment.

Mr Ow expects more than $1 billion for the portfolio, which is largely CBD-based and has copped the full brunt of the Covid-19 pandemic, where city hotel occupancies in Sydney alone have plunged from more than 90 per cent to about 30 per cent, according to one potential buyer.

Spread from Sydney Airport to the Auckland CBD, Mr Ow’s Stamford portfolio encompasses 1569 rooms and, while he is intent on selling the entire portfolio, it is understood he would consider selling some of the hotels individually, with some buyers only interested in the prized Sir Stamford Circular Quay near the Sydney Opera House.

The hotels will be sold with the opportunity to license the Stamford hotel brand, which operates in Australia and Singapore.

However, Mr Ow is expected to retain his Stamford Plaza Brisbane hotel near the Brisbane River, with local sources revealing he has redevelopment plans for a mixed-use project. The fate of his Stamford Hotel in his home base of Singapore is unknown.

It is understood marketing began on Wednesday given Mr Ow wants to reorient the direction of his hotel company and pursue other opportunities.

JLL’s Peter Harper and Adam Bury and CBRE’s Michael Simpson and Tom Gibson are understood to be involved in the marketing campaign. JLL and CBRE declined to comment.

Apart from the key asset, the Sir Stamford Circular Quay, Mr Ow has also listed the Stamford Plaza Sydney Airport. Further south, the Stamford Plaza Melbourne is part of the disposal.

Stamford also appears to be exiting South Australia, with its two Adelaide hotels on the block: the Stamford Plaza Adelaide in the city and in beachside Glenelg, the Stamford Grand Adelaide.

CK Ow, executive chairman of Stamford Land Corp. Picture: Sam Mooy

In New Zealand, the Stamford Plaza Auckland has also hit the market. The sales campaign could be difficult with several major banks limiting or exiting funding for hotel acquisitions.

However, last December, Salter Brothers, backed by Singapore’s sovereign wealth fund GIC, swooped on the Travelodge brand, which at the time was the largest hotel portfolio offering. The 11-hotel parcel, encompassing about 2000 hotel rooms, was purchased for more than $600 million from Mirvac and NRMA.

The pandemic did not appear to affect the sale price, with a couple of other recent strong hotel sales of late including Jerry Schwartz’s Four Points by Sheraton hotel in Sydney that was bought for up to $150 million by Colorado-based KSL Capital. KSL Capital also owns the majority of the Baillie Lodges, a series of upscale boutique hotels founded by local entrepreneurs James and Hayley Baillie.

Dr Schwartz bought his Vaucluse mansion in Sydney from Mr Ow for $67 million in 2018.

Dr Schwartz said that like his Sydney harbourfront house, the Stamford hotels were fabulous properties in great locations but all needed upgrading and a “bit of improvement in their management”.

Originally published as CK Ow’s Stamford makes $1 billion portfolio move as hotels hit block