Hilton Sydney sold for multi-millions

Superbly located in the hub of Sydney?s vibrant CBD, Hilton Sydney has magnificent views and convenient access to the city?s greatest attractions.
By Daisy Melwani


Hilton Hotel Sydney has been sold to Singaporean-investment house Bright Ruby for $442 million, just shy of the record paid for a competing city hotel.

The deal marks the largest for the Asian firm, and the biggest for an Australian property this year, but was just below the record $463 million the Sunshine Insurance Group put down for the Sheraton on the Park in late 2014.

According to the Australian Financial Review, under the terms of the sale, Hilton will continue management of the 579-room property, subject to a 50-year contract.

“Hilton expects to use the proceeds of the sale, net of transaction costs, to further reduce long-term debt,” the company said.

Hilton Sydney was the only hotel the group owned outright in Australia, and the sale comes shortly following a strong first quarter net profit of US$150 million, and a 6.6% increase in revPAR. EBITDA also increased by 18% to US$599 million for the first three months to March 2015.

The sale is on trend alongside numerous large hotel chains seeking an asset-light strategy, opting instead to manage properties.

Image: Hilton

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