CFA Society Singapore
SINGAPORE (Jan 29): Frasers Hospitality Trust (FHT) is putting up Sofitel Sydney Wentworth for sale at a time over A$1 billion worth of hotels are expected to change hands, according to The Australian.
Sofitel Sydney Wentworth is one of the last dowager hotels in Sydney and is said to be worth more than A$400 million ($388.4 million).
FHT first acquired the Sofitel Sydney Wentworth in 2014 for A$202.7 million. The hotel has 436 rooms, a restaurant, club lounge and conference facilities as well as one of Sydney’s largest pillarless ballrooms.
According to The Australian, the upcoming sale will be the first significant test of the city’s hospitality market for years.
Since Chinese investors swooped in on the Sheraton on the Park, the Hilton and Westin Sydney five years ago, no luxury five-star hotels in the CBD have been traded.
Sydney hotel investors say the five-star rooms will fetch about A$1 million each but also noted that some of the rooms were smaller than average and were frequently used by flight attendants.
Units in FHT closed at 72 cents on Tuesday.