Park Hyatt Hotel in Melbourne is close to being acquired for just under $200 million, marking the largest commercial deal in the city in 12 months.
The hotel is being sought after by Shayher Group, part of giant Taiwanese apartment developer Par Jar Group, as it looks to expand its Australian hospitality portfolio which already boasts the Brisbane hotel, W, a 32-level five-star 312-room hotel in the heart of the city.
Approximately $200 million is the asking price for the Park Hyatt, which hit the market six months ago but the deal, which was orchestrated by JLL Hotels & Hospitality managing director Peter Harper, is yet to exchange.
Shayher would be buying it from a Chinese group, Fu Wah International, which has hotels across the Asia Pacific region, including the five-star Park Hyatt in Auckland, New Zealand, and bought the Park Hyatt Melbourne hotel for about $140 million around 10 years ago.
This comes as Melbourne's hotel market continues to face an uphill battle, according to the recently released Dransfield Hotel Futures Report.
“There is … still several years in Melbourne’s recovery arc,” the report said, estimating it would take another two years to complete it's current supply wave, described as “significant and prolonged”.
Melbourne hotels average occupancy comes in about 70%, while in Sydney, average hotel occupancies sit around 80%.
