Malaysian developer looks to offload Perth hotel for $100m

The recently completed DoubleTree by Hilton Perth-Northbridge hotel has been put on the market with hopes of fetching $100 million by owners Malaysian developer SKS Group.

The four-star hotel with 206 rooms across over 15 levels opened its doors in December under a 15-year management agreement with Hilton Hotels of the US.

A recent Deloitte Access Economics report forecast occupancy rates in Perth to fall below 70 per cent as the city grapples with an oversupply of hotels and slump in occupancy. However, offshore investors are returning to the Perth hotel market in a counter-cyclical play as they focus on the long term.

CBRE’s Aaron Desange, Ryan McGinnity and Chloe Mason are handling the sale of the DoubleTree Perth-Northbridge on behalf of SKS Group.

“The opportunity to purchase DoubleTree by Hilton Northbridge is expected to attract demand from both offshore and local groups, following in the path of major transactions, including Holiday Inn Perth, Aloft Perth and Westin Perth,” McGinnity said.

“Hilton has been operating in WA for more than 50 years through the Parmelia Hilton Perth, with its commitment to DoubleTree by Hilton Perth-Northbridge and DoubleTree by Hilton Perth-Waterfront further evidence of its confidence in the local market.”