Singaporeans head to Brisbane for Sofitel Hotel

Billionaire Kwek Leng Beng’s CDL is understood to have swooped on Brisbane’s Sofitel Hotel, beating local players with a $165m deal.

The Sofitel Hotel in Brisbane. Picture Lachie Millard

Billionaire Kwek Leng Beng’s CDL is understood to have swooped on Brisbane’s Sofitel hotel, paying about $165m for the property and beating players including Sydney’s pub-owning Karedis and Laundy families who also had a tilt at the asset.

Singapore’s City Developments Ltd (CDL) says bookings and revenues have jumped in the first quarter on the back of relaxed Covid-19 restrictions, which has undoubtedly buoyed the group’s attitude towards hotel investment.

CDL controls the Millennium Hotel in New York and Singapore’s St Regis – and according to Forbes it is optimistic about the outlook for its core business segments.

The vendor of the 416-room Sofitel, Brookfield, last night declined to comment on the sale which was negotiated by Sam and Dan McVay of McVay Real Estate and CBRE Hotels.

The prominent hotel is positioned about Brisbane’s Central Station, which was offered vacant possession but is in need of significant renovation work.

CDL is expected to convert the hotel into a Millennium Hotels and Resort brand.

Meanwhile, the on-again and off-again sale of the Turner family’s Spicers portfolio of resort properties on the eastern seaboard has concluded at a price equating to more than $1m per room. It was sold to the Australian-owned fund manager, Salter Brothers, through agent Sam and Dan McVay of McVay Real Estate.

The sale involves six of the 10 Spicers properties in Queensland and NSW, and include Spicers Clovelly Estate, Spicers Tamarind Retreat and Spicers Peak Lodge in Queensland.

In NSW it includes Spicers Sangoma Retreat in the foothills of the Blue Mountains as well as Spicers Guesthouse and Spicers Vineyards Estate in the Hunter Valley north of Sydney. All up, the sale totals 127 rooms.

Salter Brothers managing director Paul Salter said this was a great fit for the strategy to acquire unrepeatable assets, targeting the luxury retreat market which continues to grow globally.

“We know Australians love to take short breaks at home and regional areas are leading the charge, with domestic occupancy rates well above pre-pandemic levels,” Mr Salter said in a statement.

With a portfolio of 4497 rooms across 19 hotels, Salter Brothers claims to be one of the largest hotel owners in Australia.

The deal is expected to complete by first quarter of 2023.