Hotel sells for a record price

So you fancy owning a five-star hotel in Sydney?

You'd better have very deep pockets.

The Hilton Hotel (above) in the Sydney CBD was this week sold to a major Asian private equity firm for $530 million – the largest single-asset transaction on record in the Australian hospitality sector, Hotel Management magazine reported.

Baring Private Equity Asia’s (BPEA) announced on Thursday that its affiliated real estate funds, BPEA Real Estate, had acquired the 587-room Hilton Sydney at 488 George Street.

BPEA Real Estate, Head of Australia, Paul Gately, described it as a ‘great opportunity’ and expressed his confidence in the local real estate market.

“We are excited to be a part of the next chapter of one of the most famous hotels in Australia,” Gately said.

“The Sydney Hilton is an iconic hotel, well-known to business and leisure travellers alike, while its restaurants, bars, and conference facilities have played host to Sydney locals for years.

“Quality assets in prime locations like the Sydney Hilton are tightly held and don’t become available often, so it’s a great opportunity for the BPEA Real Estate team. We have a strong conviction about the long-term outlook for Australian real estate and are excited about the potential of finding similar opportunities across a variety of sectors.”

The Hilton - built in 1974 - includes award-winning food and beverage venues, events and conferencing facilities and luxury retail outlets.

The company intends to make significant investment in the hotel with plans to upgrade and expand guest rooms, food and beverage outlets and front and back of house operations.