Far East Consortium to sell prestigious Ritz-Carlton hotels in Perth and Melbourne

Hong Kong’s Far East Consortium is moving to sell two of Australia’s most prestigious hotels - The Ritz-Carlton, Melbourne and The Ritz-Carlton, Perth - amid strong demand for trophy luxury hotel investment opportunities in Australia.

CBRE Hotels’ Michael Simpson, Tom Gibson, Aaron Desange and Vasso Zographou, together with McVay Real Estate’s Dan McVay and Sam McVay, have been appointed to steer the portfolio sale. It  provides an opportunity to acquire a combined 462 luxury hotel rooms managed by the world’s largest hotel operator Marriott International under Marriott’s pinnacle luxury brand, The Ritz-Carlton.

“The portfolio is positioned across two of the most sought after and resilient hotel investment markets in Australia, offering geographic and financial diversification,” Mr Simpson said.

“The two hotels have set the benchmark for luxury hospitality in Australia and are well positioned to capture the leisure and corporate markets in Melbourne and Perth, supported by the strength of the globally recognised Ritz-Carlton brand.”

Opened in March 2023, The Ritz-Carlton, Melbourne is one of the few highest hotels in the southern hemisphere, comprising 257 guest rooms, a 550-seat ballroom, the Atria restaurant, bar and lounge areas, a swimming pool and fitness centre, Spa complex, event rooms and a Level 80 sky-lobby offering panoramic views.

It was developed as part of Far East Consortium’s West Side Place project, providing the city’s first Ritz-Carlton.

The Ritz-Carlton, Perth opened in 2019 as the first Ritz Carlton in Australia in over 25 years and as the centrepiece of Far East Consortium’s mixed-use apartment development The Towers. The riverfront hotel comprises 205 luxury rooms, the Hearth Restaurant & Lounge, the Songbird Bar, a spa complex, infinity pool, fitness centre and event rooms.

The sale campaign aligns with ongoing pent-up demand for hotel investment opportunities in Australia, with new CBRE data highlighting that over $1.2 billion in Australian hotel assets changed hands in H1 2023 - in line with the corresponding period last year and bucking the trend of declining sales in the office, industrial and retail sectors.

Dan McVay said, “Following years of substantial construction cost inflation, it is now unfeasible to develop world-leading, premium specification luxury hotels in Australia’s capital cities. These Ritz-Carlton’s represent the pinnacle of Australia’s luxury hotel market and are unlikely to see new competition for the foreseeable future.”

The Expressions of Interest campaign will commence at the end of July 2023.