In the largest single asset transaction of 2018, and the largest ever in Perth, the brand new Westin Perth has been acquired by Malaysia’s YTL Group in a deal negotiated by JLL Hotels & Hospitality Group’s Managing Director, Mark Durran.
YTL entered the Australian hotel investment market in 2012 with their landmark $415 million purchase of the Marriott Portfolio, also brokered through JLL Hotels & Hospitality Group. The portfolio included Marriott hotels in Sydney, Melbourne, and Brisbane, and YTL now adds The Westin Perth to their luxury Marriott managed hotels in Asia, the JW Marriott Kuala Lumpur and The Ritz-Carlton Kuala Lumpur.
The 28-storey Westin Perth is one of Australia’s newest 5-star hotels, located to the east of Perth CBD in the city’s heritage quarter. Straddling Hay Street and Murray Street, the brand new asset is 12km from Perth International Airport and a short walk to Perth’s commercial offices, Hay Street Mall, Perth Exhibition & Convention Centre, and in close proximity to Royal Perth Hospital. Having opened recently in April 2018, the hotel features 368 large guest suites and 2,300 square metres of convention facilities, including the CBD’s largest ballroom. The hotel’s signature restaurant Garum, helmed by Melbourne celebrity chef Guy Grossi, has been an outstanding success since opening. Other facilities include a fitness studio, infinity edge outdoor swimming pool, and award-winning Australian spa Bodhi J.
The sale of The Westin Perth also includes Hibernian Place, offering an outdoor plaza of 2,000 square metres with notable F&B tenants such as Offshoot by Mary Street Bakery, Arthur & Co., Huxtaburger, Hadiqa, Goody Two’s Japanse Supper Club, and Uber’s WA headquarters. The property has further development potential for a commercial office tower with an existing DA for 36,545 square metres of premium Grade-A office.
“Despite competitive market conditions, The Westin Perth has performed strongly since opening in April 2018, exceeding budgeted performance, reflecting the high quality of the offering,” said Mr Durran. “Given Perth’s positive future market outlook over the longer-term, major investors are currently seeking quality hotel investments to position themselves for the future market upswing and the income and capital growth that will ensue”, he added.
Perth has a number of world-class infrastructure projects that are underway which will broaden the city’s appeal including Riverside, Perth City Link, Western Australian Museum and Elizabeth Quay at a combined worth of approximately $8.5 billion. One of the largest contributors touted to benefit the Perth accommodation market is Perth International Airport’s $2.5 billion expansion program that will allow it to keep pace with passenger demand. The WA Government has also earmarked $425 million for investment over the coming five years on purely destination marketing and event tourism, improving the city’s appeal and aggressively targeting increased airline capacity.
The sale of the hotel follows a number of major landmark hotel transactions in Australian gateway cities, most recently the sale of the Four Points by Sheraton Sydney Central for $156 million and the Sheraton Melbourne in late 2017, both deals brokered by JLL Hotels & Hospitality Group.