1888 Hotel (Ovolo 1888 Darling Harbour) - SOLD

Located in Sydney’s inner-city suburb of Pyrmont, 1888 is in close proximity to the Sydney Fish Markets, the Sydney Exhibition & Convention Centre, Darling Harbour and The Star Casino. The property comprises a limited services hotel occupying a refurbished wool store that was originally built in 1888, with the hotel commencing trade in July 2013. Facilities include a restaurant/ bar and small meeting facilities. The hotel offers a range of king and queen rooms and is characterised by its heritage listed features. The transaction was completed off market by CBRE. The stabilised yield for the hotel indicated 8.61%, as the property had only been trading for approximately 9 months prior to transacting. The purchaser has the option to gain vacant possession with $1m compensation payment required, which we understand may eventuate. Should the vacant possession option be pursued the initial yield would reflect 6.85%.