Crystalbrook Collection Hotels & Resorts to sell boutique Surry Hills asset to pursue new investment opportunities
Crystalbrook Collection has announced it will sell the luxury Crystalbrook Albion hotel in Surry Hills, as the group recycles capital to focus on its continued growth and expansion pipeline. The group will maintain management rights post-sale.
CBRE Hotels’ Wayne Bunz and Michael Simpson have been exclusively appointed to steer the sale via an Expressions of Interest campaign.
Opened in 2018, the inner Sydney hotel is situated on a 538sqm freehold land parcel in a former school convent that was carefully transformed into a premium five-star hotel offering, merging a heritage listed property with a modern, sustainable build.
The boutique hotel comprises 35 rooms including one suite, a self-service bar and a rooftop garden offering panoramic views across Surry Hills and the city of Sydney.
Geoff York, Crystalbrook Chief Executive Officer, said, “Following our recent acquisition of Rydges Sydney Harbour, which will be rebranded post substantial renovations as part of the Crystalbrook Collection, the sale of Crystalbrook Albion will allow us to recycle capital, using this to further apply our ‘Responsible Luxury’ ethos to new builds and acquisitions.”
The hotel is being offered with a Hotel Management Agreement to Crystalbrook Collection, giving the incoming purchaser the benefit of the marketing and distribution networks of one of Australia’s leading sustainably focused luxury operators.
CBRE Hotels’ National Director Wayne Bunz said the offering of Crystalbrook Albion presented an opportunity to acquire a strategic foothold in Sydney - one of Asia Pacific’s most sought-after and tightly held hotel investment markets.
“More than ever, hotel investors are looking for bespoke and boutique hotel offerings, and Crystalbrook Albion’s unique style and design, paired with its sought-after Surry Hills location, will appeal to a broad range of prospective purchasers,” Mr Bunz said.
Surry Hills is largely devoid of quality accommodation which will be a key investor drawcard, as will the hotel’s central location.
Mr Bunz noted, “The hotel attracts a mix of corporate clientele and both international and domestic leisure guests due to its proximity to key demand generators. It is situated within walking distance of Sydney’s new Tech Central precinct, as well as Central Station, Surry Hills’ acclaimed theatre, fine food and wine venues and the Sydney Cricket Ground.”
CBRE Hotels’ Managing Director Michael Simpson added, “Having opened in 2018, the hotel presents as new and will require minimum capital expenditure in the medium term, while providing the incoming owner with the benefit of tax depreciation benefits moving forward.”
Crystalbrook Albion Sydney is being offered for sale via an Expressions of Interest campaign closing 12pm Thursday 25th May 2023 (unless sold prior).