Hotels on the move as investor confidence returns
Major hotel transactions underway in Sydney and Adelaide despite continued pressures on tourism, point to signs of life for the hotel sector.
In Sydney, the Four Points by Sheraton — the city’s first major investment-grade hotel listing of the year — is reportedly under offer to an Asian investor for more than A$200 million. Located just outside the CBD, the hotel’s pending deal reflects renewed interest in prime hospitality assets.
Nearby, the 73-room Skye Suites Sydney Hotel has also changed hands. The property, which includes 918 square metres of retail space, entered the market with a A$70 million guide but is believed to have sold for around A$58 million. HTL Property and Stonebridge Property Group brokered the deal, though both agencies declined to comment.
Over in Adelaide, Regal Partners has struck a deal to acquire a 50% stake in Ark Capital Partners — a specialist in hotel investments. The new venture made an immediate move, snapping up the landmark Mayfair Hotel for A$75 million, a steep discount from its earlier A$90 million guide.
Ark said in a statement the property was acquired from a fund managed by Elanor Investment Group, noting it was “at a significant discount to prior valuations” and positioned to deliver “strong risk-adjusted returns.”
Regal Partners chief executive Brendan O’Connor said, “We believe it is the right time in the investment cycle to be looking to expand into equity real estate.”
Ark co-founder Rahul Parrab added, “Following a period of significant price dislocation... we believe the Australian hotel sector now offers investors the unique opportunity to benefit from compelling economic tailwinds and attractive supply-demand dynamics.”
Originally reopened in 2015 after a A$55 million redevelopment, the Mayfair Hotel sits in a prime location in downtown Adelaide. It includes 170 rooms and suites and combines a historic 1930s facade with a modern glass cube extension.
The transaction was handled by JLL’s Peter Harper, Adam Bury, Gus Moors and Ben Parkinson. Ark and Regal will fund the acquisition using up to A$45 million in debt, with a further A$35 million to be raised from investors. An additional A$23 million facility is available to support refurbishment plans.
Jonathan Jackson, 3rd July 2025
