Ascott Residence Trust to acquire Sydney Hotel for nearly A$61 million

The Felix Hotel in Sydney, acquired by Ascott Residence Trust, to be operated under the Citadines Connect brand. Credit: Ascott Residence TrustThe Felix Hotel in Sydney, acquired by Ascott Residence Trust, to be operated under the Citadines Connect brand. Credit: Ascott Residence Trust

Ascott Residence Trust said on Wednesday it was acquiring the Felix Hotel, located near the Sydney Airport in Australia, for A$60.6 million or S$58.8 million.

The property will have an earnings before interest, tax, depreciation and amortization (EBITDA) yield of more than 6 percent, it said in a filing to SGX on Wednesday.

The deal will be funded by divestment proceeds, bank loans or a combination of both, the trust said. ART recently divested the Ascott Raffles Place Singapore.

The trust will rebrand the 150-room, limited-service business hotel to Citadines Connect Sydney Airport once the acquisition is completed in May, the filing said. The Felix Hotel is adjacent to another property owned by the REIT, the 91-unit Quest Mascot, ART said.

“This acquisition will deepen Ascott REIT’s presence in the stable and resilient market of Australia, adding to our portfolio a quality property that provides good yield in the highly sought-after Sydney market,” Bob Tan, the REIT manager’s chairman, said in the statement.

The hotel will be the first property to be managed by the trust’s sponsor, The Ascott Ltd., under the new brand, it said.

After the deal is completed, Ascott Residence Trust will have six properties in Australia, with more than 900 units, the filing said.