Rydges Sydney Airport hotel Set for take-off
Rydges Sydney Airport hotel is for sale with a price tag of up to $270 million as the owners test the growing demand for hotels in the market.
In April 2013, Denwol, the owner of the hotel, built the four-star hotel at a reported cost of $68 million. During the pandemic, the hotel had been used as a quarantine facility and is now a base for airline crews.
Travel between Australia and New Zealand has been revived slowly with the introduction of the trans-Tasman bubble and the rollout of the COVID-19 vaccine. This has also resulted in Rydges receiving several unsolicited buyer approaches recently.
Phillip Wolanski, the managing director of Denwol, declined to comment.
JLL’s managing director Mark Durran and CBRE Hotels’ national director Wayne Bunz have been appointed to sell the property. The pair noted that an apartment in the Primus Hotel in Sydney was recently sold for $132 million – which works out to $767,476 per room.
“On-airport hotels are expected to be an immediate beneficiary of the rebound in international travel and this particular property will continue to command a significant rate premium over competing hotels located farther afield,”
Mr Bunz said.
Before the pandemic, Rydges had one of the highest occupancy rates and was part of the expansion of the international airport’s commercial precinct, which included more office space.
Mr Durran said vacant possession can be obtained, giving owners and alternate operators exposure to a variety of brands.
“Prime investment-grade hotel assets in strategic locations such as the Sydney Airport precinct, particularly those offering vacant possession, are highly sought after and prices remain solid,”