Ace Hotel hits the market in golden age for sales

One of Sydney’s boutique hotels is up for grabs with trophy buyers expected to pay up to $300m for the award-winning property.

Developed by Golden Age Group out of Melbourne, the property is managed by the trendy American-owned Ace Hotel Group. Picture: Nikki To

One of the eastern seaboard’s hippest young establishment, the Ace Hotel Sydney, has been listed for sale with aggressive price expectations of around $300m.

Fronting 47-53 Wentworth Ave, Surry Hills, the hotel opened in mid-2022 and comprises restaurants as well as multiple drinking holes including the Kiln rooftop bar as well as 264 guest rooms and suites, a gym and conference rooms.

Developed by Golden Age Group out of Melbourne, the property is managed by the trendy American-owned Ace Hotel Group and is the brand’s first foray into the southern hemisphere.

As well as 264 rooms, there is also a gym and conference rooms.

Since opening, Ace Hotel Sydney has been recognised as one of the Asia Pacific region’s best luxury lifestyle properties, winning multiple design and restaurant awards for its hospitality offerings including the Kiln Restaurant, The Lobby Bar, LOAM and Good Chemistry laneway and bar.

Marketing agents CBRE’s Michael Simpson and Tom Gibson are managing the sale via an international expression of interest campaign closing May 2.

In a statement last night Mr Simpson said as Australia’s leading economic and tourism hub, Sydney CBD hotel assets were both tightly held and highly sought-after investment opportunities.

Operationally, Sydney has recorded strong growth coming out of the pandemic, with revenue per available hotel room, a key industry metric, up 13 per cent for calendar year 2023 versus 2019.

Kiln Restaurant at Ace Hotel, Sydney. Picture: Nikki To

“Sydney continues to be one of the strongest markets in Australia for 2024 with January RevPAR up 10 per cent versus January 2023, and February being one of the strongest months in Sydney’s history,” Mr Simpson said.

“This sale presents an opportunity to acquire a rare and significant freehold stand-alone hotel in Australia’s key gateway city. The management agreement with Ace Hotels affords the incoming owner with the benefit of operation by one of world’s most iconic and ‘instagrammable’ boutique hotel operators.”

Sydney remains one of the tightest held hotel investment markets in Asia Pacific. Picture: Nikki To/Supplied

Mr Gibson said that despite global economic headwinds, the Australian hotel investment market has shown exceptional resilience, with 2023 recording the second largest year in history for total transaction volume exceeding $2.3bn, with nine deals transacting over $100m.

Sydney remains one of the tightest held hotel investment markets in Asia Pacific with only two hotels selling for more than $100m, including the Waldorf Astoria Sydney to Andrew and Nicola Forrest’s Tattarang, and the Sir Stamford at Circular Quay to JDH Capital for $210.5m.

“The scale of this opportunity combined with Sydney’s booming hotel and tourism market is expected to underpin high levels of buyer interest from both domestic and international capital sources,” Mr Gibson said.