Vibe Darling Harbour changes hands for $108m

A first-time buyer in the Australian hotel market has acquired the 4.5 star Vibe Darling Harbour for $108 million.

Sydney developer Icon Oceania opened the 145-room hotel, which includes a rooftop bar and swimming pool, late last year.

“This is the first acquisition of a quality Sydney CBD hotel for several years,” said JLL Hotels & Hospitality Group’s Andrew Langsford.

“The campaign attracted a huge amount of global investor interest.”

JLL chief executive Craig Collins said the restricted stock in the city’s hotel market made it “very difficult to buy a quality CBD hotel in Australia at present”.

“Most owners who have purchased hotels over the past few years are very happy with their investments and intend to hold long term even though they may be sitting on very large capital gains,” he said.

“They believe in the long-term growth story of the Australian hotel market and many wish to buy more assets and not sell.

“When quality hotel assets do come onto the market like the Vibe Darling Harbour Sydney, competition is very strong, as buyers do not know when the next opportunity to buy a quality asset will come up.”

Icon Oceania’s director Nico Tjen said the sale allowed it “to undertake a transaction and pursue other opportunities”.