Britain’s Yotel set to buy Sydney Airport’s Felix Hotel
British hotel group Yotel is looking to make its first acquisition in Australia and is one of several groups looking to buy Sydney Airport’s newest accommodation offering, the Felix Hotel, in a deal worth up to $70 million.
All up, six groups are carrying out feasibility studies on the Felix Hotel, which hit the market earlier this year under the auspices of its property developer vendor, Baxter International Hotel.
The 150-room hotel was listed for sale earlier this year through JLL Hotels & Hospitality vice-president Andrew Langsford, with the hotel presently run by Paul Fischmann’s 8 Hotels Group under a long-term management agreement.
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Located near the airport’s domestic terminals the 12-level Felix by 8 Hotels Sydney Airport was built on a 1500sqm site at 113-121 Baxter St with the property bought by the developers for $4.5 million three years ago.
Price expectations for the hotel were around $70 million when it first hit the market earlier this year.
Langsford confirmed Yotel was among the group of local and overseas investors wanting to buy the hotel.
The British-based Yotel Group is controlled by Al-Bahar Group, Starwood Capital Group, United Investment Portugal and Kuwait Real Estate Company. There are a number of Yotel Hotels operating around the world in New York, Boston, Singapore, London Gatwick and Amsterdam Schiphol (Airside).
Yotels are designed for the younger demographic and operate airline-style kiosks or mobile check-in as well as keyless entry with mobile devices.
Fischmann declined to comment on Friday but it is understood there are provisions for a new owner to buy out the management agreement from 8 Hotels.
Langsford has long said there would be a high level of interest in the hotel given the scarcity of accommodation near Sydney Airport.
In 2017, Sydney International Airport catered to 43 million passengers with this figure forecast to reach 74.3 million in the next 16 years.
– with Ben Wilmot
This article originally appeared on www.theaustralian.com.au/property.
