CDL to acquire Sofitel Brisbane Central for $159.2 mil

CDL has acquired Sofitel Brisbane Central for A$177.7 million ($159.2 million) or A$427,000 per key. The five-star luxury hotel has 416 rooms and suites located in the heart of the city’s central business district (CBD), and enjoys direct access to Brisbane’s Central Station. The purchase was made by City Developments Limited’s (CDL) wholly-owned hotel subsidiary Millennium & Copthorne Hotels Limited (M&C) in a 50:50 joint venture (JV) with its New Zealand-listed subsidiary Millennium & Copthorne Hotels New Zealand Limited.

Senja Residences is a 99 year leasehold executive condominium located in Senja Close, District 23. The development offers 300 units of 3- and 4- bedroom apartments, dual-key units, penthouses, and Senja Close EC various resort-style amenities. Nearby public transportation adds convenience and flexibility for residents.

CDL’s executive chairman Kwek Leng Beng said that the acquisition aligns with the group’s diversification strategy into Australia, which is one of its key markets. The group currently has several development projects, including Fitzroy Fitzroy and The Marker in Melbourne, and Brickworks Park and Treetops at Kenmore in Brisbane.

The proposed acquisition marks the group’s entry into Brisbane’s hospitality sector. The city’s pipeline of over A$20 billion in infrastructure projects and its hosting of the 2032 Olympic and Paralympic Games and Rugby World Cup in Australia in 2027 and 2029 respectively presents an attractive opportunity for the group to gain a presence in Australia and enhance their recurring income stream.

Sofitel Brisbane Central is home to the city’s largest hotel event and meeting facility, with nine meeting and conference rooms that can accommodate up to 1,100 people. It is well-connected to the city’s commercial and retail offerings, and just a short walking distance away from its various key attractions, such as Eagle Street Pier and Queen Street Mall.

The pandemic has also affected Brisbane’s hospitality market, with the city enjoying the strongest revenue recovery in 2022, significantly exceeding pre-pandemic levels.The acquisition allows the group to optimise its hospitality portfolio, something which Kwek Leng Beng says they remain focused on.