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The Singapore investment company behind the recent purchases of Rydges North Sydney and the Kennigo Hotel in Brisbane has added Peppers Kings Square in Perth to its fast-growing global portfolio.
High Street Holdings (HSH) agreed to pay roughly $26 million in an off-market deal for the 18-storey, 120-room hotel, which sits on the corner of Wellington Street and Shafto Lane, opposite Perth Arena.
Opened in November 2016 and previously managed by Mantra Group, the hotel will now be rebranded as Rydges Kings Square.
“We are extremely excited to have completed the acquisition of the Peppers Kings Square Perth,” HSH partner Daniel Yip said.
“The freehold, 120-key hotel is a great value-add opportunity in one of the country’s hottest economies and presents multiple upside opportunities, including a repositioning, the reconfiguration of the hotel’s ground level and meeting spaces, as well as the potential to create a multipurpose venue on the rooftop.”
Fortune 500 real estate company CBRE Hotels negotiated the deal.
“Both corporate and leisure travel is recovering throughout the Asia Pacific region, and Perth hotels remain exceptionally well placed to benefit from this,” CBRE head of capital markets WA Aaron Desange said.
“Perth CBD RevPAR (revenue per available room) continues to improve, and CBRE Hotels forecast this growth will climb further into 2023.
“The West Australian resources sector has multiple large-scale construction projects about to commence, which will have a positive downstream impact on the rest of the economy and particularly the lodging market.”
Located a 20-minute drive from Perth Airport, the hotel is based in a prime CBD location.
“Given the supply and demand dynamics of the Perth hotel market, the hotel’s location and the size of rooms, we are thrilled to strengthen our relationship with EVENT Hospitality & Entertainment (EVT) and bring the Rydges brand back to Perth,” Yip said.
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