Park Regis to be sold for $46 million
The budget Parks Regis Hotel in Sydney is about to sold to a Chinese buyer for a tidy $46 million.
Simon Wan’s Staywell Hospitality Group is close to securing the deal for the 122 room hotel at 27 Park Street which includes brands such as Leisure Inn. The hotel will be sold as part of a management agreement with Staywell.
The place has been on the market now for several years and Malaysia’s Mulpha Group recently pulled out of doing its due diligence on the place.
The deal is being negotiated by Colliers International.
Staywell bills itself as “one of the largest independently owned hotel management groups in the Asia Pacific region”.
It has over 35 hotels in Sydney, Melbourne, Brisbane, Cairns, Townsville and Launceston, with some also in international locations of Singapore, United Kingdom, United Arab Emirates, India and Indonesia.
It operates two hotel and apartment style brands – Leisure Inn and Park Regis.
The original plan was to sell the entire hotel portfolio last year. Staywell called in Deloitte to give it some options.
However, that went nowhere so in the end, the decision was made to sell the Park Street property, hoping to get a good price for the CBD location.
Staywell wants the property to be sold with long term management agreements.
The Park Regis deal comes before an office block. That property can be converted into a hotel.
This comes at a time when the Hong Kong-based Maville Group had been looking at converting an office tower at 333 Kent Street which it had bought for $48 million into a 24-storey tower with apartments and hotel room.
In the end, however, the Maville Group decided to sell the place, marketing the site through agents Mr Moors and Vince Kernahan of Colliers International.
Adding to the scene is Malaysia’s IGB Corp now planning to sell its St Giles, Tank Stream Hotel in Sydney. The 16-floor hotel, fronting Pitt and Hunter streets, has 280 rooms and is said to be worth more than $200 million.
by Leon Gettler, August 25th 2016
