Australia-based investment firm Salter Brothers purchased the 251-room Sofitel Adelaide Hotel in Adelaide, Australia, for 154 million Australian dollars or roughly $103 million.
CBRE Hotels and Savills negotiated the sale on behalf of owner Palumbo Group, according to a news release from CBRE.
According to CoStar data, the hotel was built in 2021 and is operated by Accor.
The hotel, which is part of a 32-story mixed-use tower, is the first internationally branded five-star hotel that has been built in the city in 30 years, according to CBRE.
“The sale of the Sofitel Adelaide represents Adelaide’s most significant single-asset hotel transaction. 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 [central business district] asset," CBRE Hotels Managing Director Michael Simpson said in the release.
"We have seen considerable investment activity for the first half of 2023, with the Sofitel Adelaide sale joining a raft of other major institutional transactions we have been involved in, including the Waldorf Astoria Sydney, Novotel & Ibis Melbourne Central and the Sofitel Brisbane, which together exceed $1.2 billion,” he added.
Savills Director Nick Lower said this sale is a record-breaking transaction for the Adelaide market, and “demonstrates the confidence in Adelaide's hospitality sector and highlights the city's position as a prime investment destination.”
“The high price per key showcases the value placed on the property, emphasizing its distinction in the market and the confidence now being seen in the Adelaide market,” he added.