Sydney’s top-end hotels hit an all-time high in November setting records for monthly occupancy (90.2%), average daily rate (AUD212) and revenue per available room (AUD191). STR Global believes occupancy will remain at present high levels driving rate growth through 2014, fuelling significant investor interest with reports the five-star Sofitel Wentworth (pictured) will be sold early next year.
Price expectations are around $200 million for the 436 room property, which vendor La Salle Opportunity Fund III bought for about AUD130 in 2010, according to a weekend story in The Australian newspaper. Sydney’s hotel values have since risen sharply since; a recent highlight the sale of the Sydney Four Seasons to Korea’s Mirae Global Investments for AUD340m in August.
Meanwhile the previously hot Singapore market has come off the boil with an increase in supply (+5.6%) hurting November performance – which was the worst for the month since 2009. Yet everything is relative. Occupancy fell 1.7% to 8.4%, rate was flat at SGD297.57 and there was a 2.2% decline in RevPAR. These are figures most markets would envy.