Ascott Reit buys 150-room business hotel near Sydney Airport for A$61m

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Ascott Reit to buy 150-room business hotel near Sydney Airport for A$61m

ASCOTT Residence Trust is buying a 150-room business hotel near Sydney Airport in Australia for A$60.6 million , the hospitality trust announced on Wednesday during the mid-day trading break.

The acquisition will be the trust's first business hotel in Australia and its first property to be managed by its sponsor, The Ascott Ltd, under the new Citadines Connect brand. It will be funded by bank loans, divestment proceeds from the previously announced sale of Ascott Raffles Place Singapore, or a combination of both. The deal has an Ebitda yield of 6 per cent.

"With this enhanced presence in the vicinity of Sydney Airport, Ascott Reit is not only well positioned to benefit from the growing transient traveller traffic, but more importantly gain access to a significant number of transport and logistics-related national corporate accounts, as well as to capture demand from the growing industries in its neighbouring suburbs," he added.

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