- The Singapore-based company acquired the asset in an off-market deal
- The deal was negotiated by CBRE hotels
- Located at 621 Wellington Street, the hotel first opened its doors in November 2016
Peppers Kings Square has sold to High Street Holdings for circa $26 million in the company’s third Australian hotel acquisition in the last 12 months.
The investment and asset management company made the purchase off-market in a deal negotiated by CBRE Hotels.
High Street Holdings Singapore partner Daniel Yip highlighted his excitement to have completed the acquisition.
“The freehold, 120-key hotel is a great value-add opportunity in one of the country’s hottest economies and presents multiple upside opportunities, including a repositioning, the reconfiguration of the hotel’s ground level and meeting spaces as well as the potential to create a multipurpose venue on the rooftop.” he said.
The hotel at 621 Wellington Street first opened its doors in November 2016. It boasts a central location in the Perth CBD directly opposite Perth Arena, positioned to attract both corporate and leisure demand.
CBRE’s Head of Capital Markets WA, Aaron Desange predicts that both corporate and leisure travel will recover throughout the Asia Pacific region. He said Perth hotels remain exceptionally well placed to benefit from this recovery.
“Perth CBD revenue per available room continues to improve and CBRE Hotels forecast this growth will climb further into 2023.”
Aaron Desange, CBRE’s Head of Capital Markets WA
“The West Australian resources sector has multiple large-scale construction projects about to commence which will have a positive downstream impact on the rest of the economy and particularly the lodging market,” Mr Desange said.
The hotel consists of 120 large guest rooms, a ground-level restaurant, meeting facilities and a gym.
Under the new ownership, the hotel will be rebranded as Rydges Kings Square as Rydges, a subsidiary of EVENT Hospitality & Entertainment becomes the hotel provider.
“Given the supply and demand dynamics of the Perth hotel market, the hotel’s location and the size of rooms, we are thrilled to strengthen our relationship with EVENT Hospitality & Entertainment (EVT) and bring the Rydges brand back to Perth,” Mr Yip said.
Daniel Yip along with David Marriott, and Giuliano Esposito, made the news in 2020 when the three left their high-level positions at JLL’s Hotels & Hospitality Group in Asia to become partners at High Street Holdings Singapore.
The company made its first Australian acquisition in 2021 with the purchase of Kennigo Hotel Brisbane in June 2021. This was followed by the $75 million aquisition of Rydges North Sydney in June 2022.
