Singapore-based investors have snapped up the 396-room Hilton South Wharf Hotel in Melbourne for AUD$230 million (USD$174 million) in the city's biggest hotel deal in 2017 so far.
The Singaporean parent of the Parkroyal and Pan Pacific hotel chains, UOL Group, will acquire the hotel from HHR Conventions, a joint venture between the New York Stock Exchange-listed REIT Host Hotels and Resorts and Australian property developer Plenary.
The acquisition is part of the group's plans to expand its hotel property portfolio and hotel management businesses in the region, UOL told the Singapore stock exchange. "The property will allow the group to have a bigger presence in the city of Melbourne in addition to its Parkroyal Melbourne Airport," it said.
UOL also manages three other hotels, including Parkroyal at Darling Harbour and Parkroyal Parramatta in Sydney, and the Pan Pacific in Perth.
The Hilton South Wharf, which is a short walk from the central business district (CBD) across the Yarra River at 2 Convention Centre Place, has 91 years remaining on a 99-year leasehold.
The hotel will be converted to a Pan Pacific within about three months.
For more on this story, go to The Sydney Morning Herald.