Sydney, Contracts have exchanged for the sale of The Ibis World Square Hotel, Sydney to an Australian private company for a bullish A$22.7 million. The deal was negotiated by Jones Lang LaSalle Hotels' Senior Vice President, Mr Mark Durran following an Expressions of Interest campaign that closed Thursday last week.

"The hotel attracted strong interest with over 62 enquiries registered. Ten offers to buy the asset were received and keen bidding ensued" said Mr Durran. "The sale price achieved for this hotel and other recent sales, such as The ANA Sydney and The Westin Hotel Sydney, reflect investor confidence in Sydney's improving hotel and tourism market fundamentals."

The Hotel opened in early 1999 and was purpose designed as an Ibis Hotel. It is one of the most profitable hotels in Sydney and has consistently outperformed market averages.

Located near the corner of Goulburn and Pitt Streets, the 17 storey hotel has 166 rooms and a 100 seat breakfast room. The two stratums sold are subject to a 125 year ground lease.

The Hotel is currently operated by Accor Asia Pacific.

"The room supply outlook for Sydney is strongly positive, as the trend to residential conversions continues to reduce the total room stock of the city. Since October 2000, total room supply has contracted by 2,072 rooms. A further 961 rooms are expected to close by December 2004 giving a total of 3,033 rooms or 16 hotels being converted or redeveloped to residential units. Most of this redevelopment has occurred in the 3-4 star sector" he added

Mr Durran said "Buyers are positioning themselves for the anticipated strong future growth prospects as market recovery continues to gather pace over the next year"

This investor confidence augurs well for the sale of Australia's premier hotel asset the 5 star Park Hyatt Sydney which is currently being marketed globally by Jones Lang LaSalle Hotels.

Jones Lang LaSalle Hotels, the world's leading hotel investment services group, provides clients with value-added investment opportunities and advice. Its recent two-year success story includes the sale of 13,994 hotel rooms to the value of US$1.4 billion in 48 cities and advisory expertise for 173,021 rooms to the value of US$32.6 billion across 343 cities. Jones Lang LaSalle Hotels' services include transactions, mergers and acquisitions, financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment and selection and industry research. Jones Lang LaSalle JLL is the world's leading real estate services and investment management firm, operating across more than 100 key markets on five continents. www.joneslanglasallehotels.com.

Fiona Cregan
+612 9220 8786
JLL