Yeh’s Group snaps up Sydney’s Seasons Harbour Plaza
The Yeh’s Group has bought the Seasons Harbour Plaza Sydney in a long-running play that will bolster a quiet Sydney hotel market that’s seen few deals struck this year.
The market is also awaiting the finalisation of a move by Singapore’s acquisitive Royal Group Holdings to buy one of Sydney’s last dowager hotels, the landmark Sofitel Wentworth, for more than $300 million.
Hoteliers have been hit by new openings that have caused room rates to soften, although the low dollar could prompt a pick up in tourism business and demand remains strong.
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A review by agency Colliers International shows most major markets in Australia are experiencing a decline in room rates and occupancy that is explained by the amount of new hotels being opened, rather than a drop off in demand.
Colliers research suggests this trend is likely to continue with a projected 15% to 40% growth in supply across the major markets up until 2023.
But The Yeh’s Group is expanding, and its latest acquisition is rumoured to have topped $80 million. It bought the Park Regis Hotel in Sydney from iProsperity last year for $54.18 million.
The Yeh family last year put an 80-room Sydney CBD hotel in Liverpool Street up for sale for $75 million to $80 million but it did not trade. The group is also converting a warehouse in a Sydney laneway into a 58-room hotel.
– with Damon Kitney
This article originally appeared on www.theaustralian.com.au/property.
