SINGAPORE (EDGPROP) - City Developments Limited (CDL) has acquired Sofitel Brisbane Central for A$177.7 million ($159.2 million) or A$427,000 per key. This will be CDL’s third hotel in Australia.

The purchase was made by the group’s wholly-owned hotel subsidiary Millennium & Copthorne Hotels Limited (M&C) and in 50:50 joint venture (JV) with its New Zealand-listed subsidiary Millennium & Copthorne Hotels New Zealand Limited on March 22 when it entered into a purchase sale agreement (PSA) and business asset sale agreement with Brookfield Asset Management.

The five-star luxury Sofitel Brisbane Central has 416 rooms and suites and is Brisbane’s largest single-branded hotel by room inventory. The 30-storey hotel is home to the city’s largest hotel event and meeting facility with nine meeting and conference rooms that can accommodate up to 1,100 people.

Softel Brisbane Central is located in the heart of the city’s central business district (CBD) and enjoys direct access to Brisbane’s Central Station. The hotel’s location also offers connectivity to the city’s commercial and retail areas, the Brisbane Airport, Brisbane Entertainment Centre, Gold Coast and the rest of Queensland.

Some of Brisbane’s key attractions such as Eagle Street Pier and Queen Street Mall are also within walking distance.

From the hotel, guests will be able take in views of Brisbane’s iconic ANZAC Square, the city’s skyline and even the Sunshine Coast, which is about an hour and a half’s drive away.

The acquisition is said to align with CDL’s diversification strategy with Australia being one of its key markets. The group also has several development projects, including Fitzroy Fitzroy and The Marker in Melbourne, and Brickworks Park and Treetops at Kenmore in Brisbane.

“The proposed acquisition marks the group’s entry into Brisbane’s hospitality sector. Brisbane is amongst the key hospitality markets in Australia that have enjoyed the strongest revenue per average room (RevPAR) recovery in 2022, significantly exceeding pre-pandemic levels,” says CDL’s executive chairman Kwek Leng Beng.

“Brisbane’s pipeline of over A$20 billion in infrastructure projects will further enhance the city’s position as a world-class sporting, tourism and business events destination. With Brisbane being the host city for the 2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029, the acquisition presents an attractive opportunity for the group to enlarge our presence in Australia and enhance our recurring income stream. The group remains focused on optimising our hospitality portfolio,” he adds.