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Melbourne-headquartered alternative investment management firm Salter Brothers has signed contracts to acquire the Sofitel Adelaide Hotel for approximately $154 million, bolstering a portfolio that already includes seven Australian hotels and two under development.
CBRE Hotels and Savills negotiated the sale of the 251-key hotel on behalf of South Australian development and construction firm Palumbo Group. CBRE Hotels also recently brokered the $170 million sale of the Novotel & ibis Melbourne Central Hotel.
"The sale of the Sofitel Adelaide represents Adelaide’s most significant single asset hotel transaction," says CBRE Hotels managing director Michael Simpson.
"The developers, who were the vendors in this transaction, literally poured their heart and soul into delivering what is arguably the best internationally branded luxury hotel in Adelaide.
"We are privileged to have had the opportunity to work with the vendors to negotiate this transaction. The sale of the Sofitel Adelaide has reset the benchmark for the Adelaide luxury hotel market with a record price per key achieved for a CBD asset."
Simpson highlights considerable investment activity in hotels during the first half of 2023, with the combined sales of the Waldorf Astoria Sydney, Novotel & Ibis Melbourne Central and the Sofitel Brisbane exceeding $1.2 billion.
Located at 108 Currie Street in the heart of the CBD, Sofitel Adelaide is the first internationally branded five-star hotel to be built in Adelaide in 30 years, forming part of a 32-storey mixed use tower with two flexible retail tenancies included.
The acquisition will allow Salter Brothers to capitalise on the significant public and private investment that is currently being undertaken throughout Adelaide.
"We are extremely pleased to acquire this quality institutional luxury hotel asset in one of Australia’s most robust markets," says Salter Brothers managing director Paul Salter, who established the company with his brother Rob Salter in 2014 following long careers in financial services.
Salter Brothers is the largest owner of InterContinental Hotel Group (IHG) properties in Australia, with six hotels in its portfolio managed by IHG including the InterContinental Melbourne The Rialto, the Holiday Inn at Potts Point in Sydney, Voco on the Gold Coast, and three Crowne Plazas in Coogee (NSW), Canberra and Melbourne.
Its seventh operating hotel is Brisbane's Hyatt Regency, while it also has hotels under development at Flinders Lane, Melbourne and a Holiday Inn Express planned in Canberra on the current Crowne Plaza site.
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