Strong local and international interest in Mirvac's hotel offerings
Some 20 buyers are reputedly thinking of expressing interest in Mirvac’s $450 million prestige hotel offering.
The interested parties reportedly include LaSalle Investment Management, US giant Blackstone, and Australian property manager Toga.
The French-based hotel chain Accor, the US-based Marriott Hotels and Resorts, and Singapore's Grand Chancellor, owner of Hotel Grand Central, have also been suggested as among the touted parties.
It has also been reported that LaSalle is considering buying Brisbane’s Chifley at Lennons hotel for about $57 million, according to the Australian Financial Review.
The Australian revealed in June that Mirvac Group had appointed Lazard to review its hotel arm.
Mirvac's hotel offering includes its 49% stake in the Mirvac Wholesale Hotel Trust, which owns seven four- to five-star properties in Sydney, Brisbane and Melbourne.
The group would also offload the Sebel hotels in Newcastle in NSW and Mandurah in Western Australia.
But Mirvac intends to retain The Como Hotel in Melbourne as a redevelopment site.
The offering also includes the 49% stake in Mirvac's Tucker Box Hotel Group, made up of 13 Travelodge hotels.
The Sydney Morning Herald has reported Mirvac is thought to be considering management deals to ensure Mirvac retains an interest in the 46 assets, which include Sea Temple, Quay West Suites, Sebel and Citigate.
Mirvac holds the management rights for almost 6,000 hotel rooms in 41 Australian hotels and three in New Zealand.
The other pricey hotel listing is Thakral Holding's intended sale of its $250 million Wynyard complex, which includes the 446-room Menzies Hotel, along with an office building, car park and retail concourse at Wynyard station.
Craig Collins, of Jones Lang LaSalle Hotels, says Sydney has maintained its position as Australia's top hotel trading market.
Its status was underpinned by consistent occupancy levels above 85% and solid revenue per available room (RevPAR) growth.
The year to date RevPAR had surpassed the 2008 peak with Sydney's accommodation market returning to the strong growth before the financial crisis.
Craig Collins says average daily rate growth has risen to 7.1% over the seven months to July 2011 to $203.68.
