Boutique Surry Hills hotel sells for $30m
202 – 210 Elizabeth St, Surry Hills NSW
A new six-floor hotel in inner-city Sydney has sold for $30 million to a local hotelier.
The hotel was constructed by Sydney-based Alessi Design and Build, and much of the structure uses cross laminated timber giving it a lighter environmental footprint than concrete, a first for a Sydney commercial hotel.
The hotel at 202-210 Elizabeth St, Surry Hills has 38 rooms and sold off-market via Colliers National Director Asia Markets Joseph Lin, alongside Paul Fischmann’s 8 Hotels and property investor and developer Jonathan Hasson.
The hotel includes two ground floor retail spaces, three outdoor terrace areas and a rooftop with views of the Sydney CBD.
This six-floor hotel in Surry Hills sold for $30m.
“Given the post-pandemic recovery story, astute investors remain very interested in Sydney commercial properties in prime locations,” Mr Lin said.
“It’s not difficult to understand the acquisition strategy of this newly completed hotel in the heart of the Tech Central precinct, the largest technology and innovation hub and urban revitalisation project in the foreseeable future.”
The hotel took three years to build, with construction initially starting just after Covid restrictions were lifted.
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Surry Hills has become a hot spot for commercial establishments selling for high prices.
Colliers Head of Hotels Gus Moors said the sale was testament to the strong long-term performance fundamentals of the Sydney hotel market.
“The recovery in trading gets better each month, with citywide occupancies now moving towards 70 per cent and average rates approaching nearly $280 across the CBD.”
“To put that into context, the Sydney CBD had a rate of around $250 for the full calendar year of 2019.”
The hotel is in proximity of Central station.
Looking forward to the future, Mr Moors pointed to the return of corporate and international travel recommencing in addition to the emergence of cruise ships as a promising sign that Sydney’s hotel and leisure industry is set to recover.
“When you consider that hotels price their inventory on a daily (if not hourly) basis, it’s an asset class that can weather an inflationary environment well.”
“Consequently, we are seeing the capital markets now keenly focused on the sector.”
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