Singapore’s CDL agrees to acquire 5-star Sofitel Brisbane Central, the largest hotel in the city, from Canada’s Brookfield.
Singaporean leading global real estate developer City Developments Limited (CDL) is moving forward with an acquisition of the Sofitel Brisbane Central, the largest hotel in in the city, from Canadian asset management firm Brookfield Corporation.
CDL has stated that a joint venture equally owned by their Millennium & Copthorne Hotels and M&C New Zealand hospitality divisions will acquire the 5-star luxury hotel for AU$177.7 million (US$119 million).
Situated in the heart of Brisbane’s Central Business District (CBD), the 30-story hotel has 416 rooms, a number of F&B establishments, utilities, functional rooms, and is directly linked to Central Station.
This acquisition will mark CDL’s entrance into Brisbane’s hospitality sector, adding to their growing portfolio of projects in development in the city and throughout Australia.
CDL, which is chaired by billionaire Kwek Leng Beng and 49% owned by Malaysia-based Hong Leong Group, completed luxury residential project Ivy and Eve in Brisbane in 2018 and the group’s real estate investment trust (REIT) associate CDL Hospitality Trusts also owns two Australian hotels – Mercure Perth and Ibis Perth.
“The acquisition presents an attractive opportunity for the Group to enlarge our presence in Australia and enhance our recurring income stream,” commented Kwek Leng Beng, the Chairperson of City Developments Limited.
Kwek further identified Brisbane as one of the key hospitality markets in Australia, experiencing the strongest revenue per available room (RevPAR) recovery in 2022, and “significantly exceeding pre-pandemic levels.”
The government of Brisbane’s investment of over AU$20 billion into infrastructure projects will also further propel the city’s tourism, business, and sports events sectors. also expected to further enhance the city’s position as a world-class sporting, tourism and business events destination.
Brookfield had previously acquired Sofitel Brisbane Central in 2012 from their AU$410 million takeover of Thakral Holdings.
Featured banner image credit: sofitelbrisbane.com.au