Ascott Residence Trust (Ascott Reit) is acquiring Felix Hotel, a prime freehold limited-service business hotel located near Sydney Airport, for A$60.6 million ($58.8 million).
Upon completion of the acquisition in May, the 150-room property will be rebranded as Citadines Connect Sydney Airport. This will be Ascott Reit’s first business hotel in Australia and its first property to be managed by its sponsor, The Ascott Limited (Ascott), under the new Citadines Connect brand.
The 150-room Citadines Connect Sydney Airport will be Ascott Reit’s first business hotel in Australia (Credit: Ascott Reit)
A sub-brand of Ascott’s well-established Citadines serviced residence brand, Citadines Connect business hotels cater to frequent travellers, offering a chic living experience in vibrant city destinations. Citadines Connect Sydney Airport will be Ascott Reit’s first limited-service business hotel in Australia.
With a contemporary design, Citadines Connect Sydney Airport has rooms ranging from 194 sq ft to 431 sq ft, each with a king or queen bed and 55-inch internet-enabled smart television that supports Netflix streaming.
The 12-storey property also has a sky bar, sky lounge and outdoor terrace. Conferencing facilities, carpark spaces and complimentary high-speed Wi-Fi and USB charging outlets are available.
Sky Bar at Citadines Connect Sydney Airport (Credit: Ascott Reit)
The acquisition will bolster Ascott Reit’s portfolio in Australia to over 900 units across six properties. Ascott Reit currently owns three properties in Sydney – Quest Mascot, Quest Campbelltown and Quest Sydney Olympic Park – in addition to Citadines St Georges Terrace Perth and Citadines on Bourke Melbourne.
The accretive acquisition, with an EBITDA yield of over 6%, will be funded by bank loans, divestment proceeds or a combination of both. This acquisition will further strengthen Ascott Reit’s investment in developed markets, which collectively accounts for almost 80% of the asset value.