City Developments Limited acquire landmark Sofitel Brisbane Central hotel

Sofitel Brisbane Central hotel amongst Brisbane's central station with a palm tree and several tall trees in front.

CDL Australia parent company, City Developments Limited, has entered into an agreement to acquire the iconic, 5-star Sofitel Brisbane Central hotel to expand its hospitality footprint in Australia.

The $177.7 million acquisition, through wholly-owned subsidiaries, will be the Group’s third hotel in Australia and its first entry into the Brisbane market.

Located on Turbot Street in the heart of Brisbane’s CBD, the 30-storey hotel is the city’s largest single branded hotel by room inventory and home to the city’s largest hotel conference facilities.

Directly linked to Brisbane’s transport hub, Central Station, the hotel boasts exceptional views of the city’s exquisite skyline with a total of 416 rooms and suites, and six restaurants, bars and lounges.

The Sofitel, originally known as the Brisbane Sheraton Hotel, was designed by Conrad Gargett Architects and constructed in 1984, becoming one of the best-known landmarks in the CBD.

Mr Kwek Leng Beng, CDL Executive Chairman, said: “The proposed acquisition marks the Group’s entry into Brisbane’s hospitality sector. Brisbane is among the key hospitality markets in Australia that have enjoyed the strongest RevPAR recovery in 2022, significantly exceeding pre-pandemic levels.

“Brisbane’s pipeline of over A$20 billion in infrastructure projects will further enhance the city’s position as a world-class sporting, tourism and business events destination. With Brisbane being the host city for the 2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029, the acquisition presents an attractive opportunity for the Group to enlarge our presence in Australia.”

Following the expected completion of the acquisition in the second half of this year, Sofitel Brisbane Central will continue to be managed by the Accor Group under its Sofitel brand.

The acquisition of Sofitel Brisbane Central aligns with the Group’s diversification strategy, with Australia being one of its key markets. CDL Australia has several development projects, including Fitzroy Fitzroy and The Marker in Melbourne, and Brickworks Park and Treetops at Kenmore in Brisbane.

The Group’s REIT associate CDL Hospitality Trusts also owns two hotels in Australia – Mercure Perth and Ibis Perth.