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Sofitel Adelaide Hotel
Salter Brothers, one of the region’s most active hotel investors, has exchanged contracts to acquire the multi-award winning Sofitel Adelaide Hotel for approximately $154,000,000.
CBRE Hotels together with Savills negotiated the sale of the 251-key hotel on behalf of one of South Australia’s most respected development and construction firms Palumbo Group.
Salter Brothers Managing Director Paul Salter said, “We are extremely pleased to acquire this quality institutional luxury hotel asset in one of Australia’s most robust markets.”
Located at 108 Currie Street in the heart of the CBD, Sofitel Adelaide is the first internationally branded five-star hotel to be built in Adelaide in 30 years, forming part of a 32-storey mixed use tower with two flexible retail tenancies included.
CBRE Hotels Managing Director Michael Simpson noted, “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 CBD asset.”
The acquisition will allow Salter Brothers to capitalise on the significant public and private investment that is currently being undertaken throughout the city.
Mr Simpson said, “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.”
Savills Director Nick Lower added, “The Sofitel Adelaide has earned its reputation and place on the Adelaide skyline as a leading 5-star hotel product, offering unrivalled luxury and exceptional guest experiences. Its presence contributes to Adelaide's allure as a premier destination, attracting domestic and international visitors alike.”
“The extraordinary record price achieved sets a new benchmark in the Adelaide market, reflecting the property's exceptional quality and desirability.
“This record-breaking transaction 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, emphasising its distinction in the market and the confidence now being seen in the Adelaide market.”