Home > Overseas Investment News > Chinese Private Capital Group Buys Park Regis for $46 Million
Chinese Private Capital Group Buys Park Regis for $46 Million
Brief:A Chinese private capital group is said to buy Park Regis Hotel for $46 million from Staywell Hospitality Group.
The 122-room Park Regis Hotel at 27 Park Street, Sydney, has changed hands.
Sydney-based private hotel company Staywell Hospitality Group has sold its Park Regis Hotel in the Sydney CBD to a Chinese private capital group for $46 million.
The new owner bought the hotel through its operating company, a Melbourne-based financial planning company. 
The same private equity group is also currently in exclusive due diligence to buy the residential development-approved 333 Kent Street building for $90 million. Park Regis is its second acquisition in the last few weeks. 
The 122-room hotel at  27 Park Street was sold with a long 15-year management agreement to the private equity group, which acquired the Park Regis because its replacement value was attractive given the low hotel stock in the Sydney CBD. 
Hotel investments such as the Park Regis are hard to come by in Sydney, with many investors holding on to tight stock. 
Hotels for sale have been snapped up at top prices in recent times as seen with the $445 million sale of the landmark Westin Hotel to Singapore's Far East Organization and Hong Kong's Sino Group and the Sydney Hilton Hotel sold to Singapore-based Bright Ruby for $442 million last year.
It is understood Park Regis' new owner has been in business in Australia for about eight years, and is backing the Salter Brothers' investment in the $500 million IHG Hotel portfolio acquired from Eureka Funds Management late year. 
he portfolio of ­hotels includes the Intercontinental Hotel in Melbourne, Crowne Plaza Melbourne, Crowne Plaza Coogee, Crowne Plaza Canberra and Holiday Inn Potts Point, and is now owned by the SB&G Hotel Group. 
Staywell Hospitality in the meantime is targeting more Asian property acquisitions and is in discussions to develop new hotels in Perth, Adelaide and Darwin as it seeks to build a 100-strong hotel chain and a near $500 million balance sheet within three years.
Staywell currently operates 35 hotels under its Park Regis and Leisure Inn brands, in Australia, India, Singapore, Bali and Dubai. It has also expanded to New Zealand and the UK and is looking at expansions to China. 

The Australian Financial Review

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