Hotel billionaire flies high, buying out Sydney Seaplanes

Hotel billionaire Jerry Schwartz is flying high, buying majority control of Sydney Seaplanes from former owners Aaron Shaw and Ken Gaunt.

Schwartz will gain full ownership of the charter business by the middle of this year.

Jerry Schwartz.Credit: Janie Barrett

Sydney Seaplanes operates scenic flights from the harbourfront at Rose Bay in the upmarket eastern suburbs. The deal includes the company’s adjoining Rose Bay headquarters and the Empire Lounge restaurant, bar and function venue.

Through his Schwartz Family Company empire, the rich-lister controls one of Australia’s largest privately owned hotel and hospitality companies. Schwartz has 15 hotels with 4300 rooms, managed by brands including Sofitel, MGallery, Novotel, Mercure, Ibis, Rydges, Hilton, Paradise Resort Gold Coast and Leura Gardens Resort.

The Sydney Seaplanes deal comes as the owners of Schwartz’s former hotel Four Points by Sheraton Central Park, the Colorado-based tourism investor KSL Capital, put the property back on the market.

Four Points opened in 2018 in the heart of the CBD’s major growth precinct, Tech Central. KSL paid $151 million in 2021 for the 309-room hotel. They are now selling into a much better market.

Recently renovated, it includes 45 suites, a new bar and restaurant, a fitness centre, and 270 square metres of conference and meeting space. JLL’s Gus Moors and Andrew Langsford, together with CBRE Hotels’ Michael Simpson and Tom Gibson, are joint agents for the sale.

Toga and IHG

Taking advantage of the industry’s rosier prospects are Toga and IHG, who have separately launched two new hotels on opposite sides of the Sydney Harbour Bridge.

Operated by TFE Hotels and developed and owned by TOGA Group – both headquartered in Sydney – The Eve anchors TOGA Group’s $200 million mixed-use Surry Hills Village. The 102-room boutique hotel on Wunderlich Lane has Sydney’s latest rooftop pool for guests.

An artist’s impression of the adjoining rooftop deck and pool at The Eve Hotel.

“We have a prominent address at the crossroads of Surry Hills and Redfern, and a location full of rich history,” said TOGA managing director and TFE Hotels chairman Allan Vidor.

Across the bridge, IHG has re-badged its former Courtyard by Marriott Sydney North-Ryde into the Crowne Plaza Sydney Macquarie Park. The venue is close to the new Metro line.

It features 196 rooms that will be refreshed for work and leisure guests as part of its staged upgrade. There will be a complete makeover of the lobby as well.

Hotel uptick

Peak industry body Accommodation Australia hopes solid occupancy figures during the holiday season are signalling a better year for the sector, which has been hampered by disappointing numbers of international tourists and increased cost-of-living pressures.

For the year to December 2024, the hotel occupancy rate was 71.3 per cent compared with 69.5 per cent in 2023, boosted by events like Taylor Swift’s tour and the NRL and AFL grand finals.

“This is a solid result given international tourists remain at only 88 per cent of pre-COVID levels and families across the nation are dealing with cost-of-living pressures,” chief executive James Goodwin said.

“These big concerts and events provided the sector with some much-needed sugar hits, but we can’t rely on international superstars to keep our hotels full all year round.”

The average cost of a hotel room remained stable, increasing $2.50 to $239.65, a rise of 1.1 per cent, well below the inflation rate.

Salvos’ BTR

Investa has launched into the studio living sector in a partnership with The Salvation Army to develop an estimated $230 million project at 140 Elizabeth Street, Sydney.

When complete, the landmark project in the heart of the CBD will feature 245 fully furnished, self-contained studio apartments and resident amenities, including co-working spaces, indoor entertainment and dining areas, and outdoor terraces.

For the year to December 2024, the hotel occupancy rate was 71.3 per cent compared with 69.5 per cent in 2023, boosted by events like Taylor Swift’s tour and the NRL and AFL grand finals.Credit: Christopher Pearce

It follows Investa’s foray into build-to-rent projects where it has a pipeline of assets, including the recently completed Indi Sydney at 298 Pitt Street, and the under-construction Indi Footscray and Indi Southbank in Melbourne.

Carolyn Cummins can be contacted at [e-mail].

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