The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterTue 05 Jul 16

Mercure Sale Caps More Than $120m In Parramatta Hotel Acquisitions

M

A private Asian investor has acquired the landmark Mercure Parramatta hotel in a deal valued at $40m which is situated at 106 Hassall Street, on the fringe of the Parramatta CBD.

The transaction follows last week's news that Starwood Hotels and Resorts signed an agreement with Sydney-based developer, JL Parramatta Pty Ltd, to open Four Points by Sheraton Parramatta in 2018, in a deal reportedly valued north of $80m.

The Mercure's 4 star, 165 room hotel is managed by Accor and operates under the Mercure brand via a management agreement extending s until 2021.

Mercure Parramatta includes meeting and conference rooms, a restaurant and terrace bar, outdoor swimming pool, spa, floodlit tennis court and undercover parking for up to 160 vehicles.

It benefits from a substantial 4,997 sqm freehold site, which offers room for a possible expansion or redevelopment.

The surplus land could also accommodate a residential development, subject to the relevant planning approvals.

CBRE Hotels Director Andrew Jackson negotiated the unconditional sale of the Mercure Parramatta property. 

“Parramatta is becoming one of the go-to locations for investors seeking to move away from the tightly held Sydney CBD market and into a more affordable area, which is set to grow substantially over the coming years,” Mr Jackson said.

“Underpinned by ongoing infrastructure improvements – particularly transport links –corporates and government departments have been seeking to expand in the Western Sydney region. This has presented hotel investors with a substantial value proposition as they broaden their focus beyond the Sydney CBD.”

“The hotel’s profitability is expected to continue to grow over the coming years as management makes further improvements to the existing cost structures and recent refurbishment works enable the operator to drive room rates and occupancy levels,” Mr Jackson said.

Corporate demand is expected to be a key driver of the hotel’s future performance spurred by ongoing commercial development in the Parramatta CBD – now Australia’s sixth largest city.

Mr Jackson noted that the high rates currently charged by Sydney CBD hotels had paved the way for suburban operators to not only increase their own rates, but also market themselves as being a cheaper alternative.

“With occupancy rates in the CBD hovering around the 86% mark and room rates being in the region of $230 per night, the potential for growth in the Parramatta hotel market is significant,” Mr Jackson said.

Limited new supply in Parramatta is also attracting investor interest as is the development of Sydney’s second airport at Badgerys Creek.

Mr Jackson also noted that significant increases in tourism volumes, both international and domestic, were underpinning interest in hotel investment opportunities throughout the broader Sydney market.

 

HotelAustraliaParramattado not useReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/interest-in-parramatta-hotels-ramps-as-mercure-sold-to-investor