Home HOTEL MANAGEMENT Sofitel Adelaide sold to Salter Brothers for record $154 million – Hotel Management

Sofitel Adelaide sold to Salter Brothers for record $154 million – Hotel Management

Sofitel Adelaide sold to Salter Brothers for record $154 million – Hotel Management

Luxury five-star hotel Sofitel Adelaide has been purchased by global fund manager Salter Brothers for AU$154 million – a record price for a single asset hotel deal in the South Australian city.

The luxury hotel on Currie Street, which opened in 2021, is managed by Accor and consists of 251 guestrooms and suites, Garcon Bleu restaurant, two bars, as well as extensive leisure facilities and meeting spaces.

The deal marks Salter Brothers’ first hotel in the state and is the first asset acquired in Salter Brothers’ Core Hospitality Real Estate Fund. The fund is focused on newer upscale and luxury hotels that appeal to a broad range of segments and require minimal or zero front-end capital expenditure.

Garcon Bleu, Sofitel Adelaide

“We’re excited about Salter Brothers’ first foray into the South Australian market, which has proven to be a premium events, business and tourism destination,” said Salter Brothers Managing Director, Paul Salter.

“Adelaide accommodation has had an incredibly strong 2023, off the back of a series of amazing sporting events and festivals.

“Sofitel Adelaide is a luxury hotel with a globally celebrated brand, and we will continue to provide a unique guest experience for Australian and international travellers to the city.”

Commenting on the acquisition, Accor Pacific CEO, Sarah Derry, said she looks forward to continued collaboration with the business.

Sofitel Adelaide features 251 guest rooms

“We are delighted to extend our partnership with Salter Brothers and the continued strengthening of Accor’s relationship with such a dynamic and successful group,” she said.

“We share a vision and commitment to delivering exceptional experiences for our guests and I look forward to the ongoing success of our collaboration.”

CBRE Hotels together with Savills negotiated the sale on behalf of development and construction firm Palumbo Group.

CBRE Hotels Managing Director, Michael Simpson, said the sale tops that of any single asset hotel transaction in Adelaide.

“The developers, who were the vendors in this transaction, literally poured their heart and soul into delivering what is arguably the best internationally branded luxury hotel in Adelaide,” Simpson said.

Club Milesseme at Sofitel Adelaide.

“We are privileged to have had the opportunity to work with the vendors to negotiate this transaction. The sale of the Sofitel Adelaide has reset the benchmark for the Adelaide luxury hotel market with a record price per key achieved for a CBD asset.”

Simpson said there has been considerable investment activity for the first half of 2023, not just in Adelaide but across Australia’s major cites, pointing to the Waldorf Astoria Sydney, Novotel and Ibis Melbourne Central and the Sofitel Brisbane, which together exceed AU$1.2 billion.

Savills Director, Nick Lower, said the hotel has earned its reputation as a leading 5-star product, “offering unrivalled luxury and exceptional guest experiences”.

“Its presence contributes to Adelaide’s allure as a premier destination, attracting domestic and international visitors alike,” he said.

“This record-breaking transaction demonstrates the confidence in Adelaide’s hospitality sector and highlights the city’s position as a prime investment destination. The high price per key showcases the value placed on the property, emphasising its distinction in the market and the confidence now being seen in the Adelaide market.”


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