CDL has acquired Sofitel Brisbane Central for A$177.7 million ($159.2 million), furthering the group’s efforts to optimise its hospitality portfolio. The five-star luxury hotel, which boasts 416 rooms and suites, is located in the heart of Brisbane’s central business district and is the largest hotel by room inventory in the city.

Altura EC is a 99-year leasehold executive condo project located near the Bukit Batok MRT station. The public auction initiated by HDB has generated heavy competition between bidders, with the winning one advancing Altura EC to the site to develop 375 residential units.

Kwek Leng Beng, Executive Chairman of City Developments Limited (CDL) comments on the acquisition of Sofitel Brisbane Central for A$177.7 million ($159.2 million), saying that it “presents an attractive opportunity for the group to enlarge our presence in Australia and enhance our recurring income stream”. The purchase was made by CDL’s wholly owned hotel subsidiary, Millennium & Copthorne Hotels Limited (M&C) and in joint venture with its New Zealand-listed subsidiary Millennium & Copthorne Hotels New Zealand Limited.

The acquisition of the five-star luxury hotel – which was completed on the 22nd March 2021 with the signing of a purchase sale agreement (PSA) and business asset sale agreement with Brookfield Asset Management – is a strategic move for CDL and aligns with their diversification strategy; Australia being one of the group’s key markets. Located in the heart of Brisbane’s CBD, the 30-storey hotel features 416 rooms and suites and enjoys direct access to Brisbane Central Station.

The hotel’s amenities include the city’s largest hotel event and meeting facility with nine meeting and conference rooms that can accommodate up to 1,100 people, and is close to many of Brisbane’s key attractions such as Eagle Street Pier and Queen Street Mall. Guests are able to take in views of Brisbane’s iconic ANZAC Square, the city’s skyline and the Sunshine Coast, which is about an hour and a half drive away.

Brisbane is one of the key hospitality markets in Australia that have exceeded pre-pandemic RevPAR levels in 2022. The boost in revenue comes with the city being the host of the 2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029. Furthermore, Brisbane’s pipeline of over A$20 billion of infrastructure projects is set to bring about positive developments for the city.

In addition to Sofitel Brisbane Central, CDL are working on several development projects in Australia, including Fitzroy Fitzroy and The Marker in Melbourne and Brickworks Park and Treetops at Kenmore in Brisbane. With the acquisition of Sofitel Brisbane Central, CDL is continuing to build on their growth strategy with the aim of optimising their hospitality portfolio.