The sale of the first class international standard Sydney CBD hotel, was negotiated by Jones Lang LaSalle Hotels' - Asia Pacific CEO Mr David Gibson and Mr Mark Durran, Senior Vice President Investment Sales, on behalf of its US-based owners Fairmont Raffles Holdings International.

Abacus Property Group has exchanged contracts to acquire the Swissôtel Sydney for A$85 million. 

The 359-room Hotel features extensive food, beverage, conference and recreational facilities.  "The Property's prime location in Sydney enables it to benefit from both the strong leisure and commercial markets that are attracted to the city," said Mr Gibson.

The strata-freehold interest of the Property, which as well as other discreet areas occupies levels 8 through to 25 at 68 Market Street, was offered for sale with the benefit of Swissôtel Hotels and Resorts management.  "With strong existing cash flow and excellent income growth potential, Abacus has acquired a well-managed investment which is part of a fast-expanding global brand," said Mr Gibson.

The off-market Expressions of Interest campaign attracted competitive bids from a number of institutional and private investors.  The property will settle in July 2007.

"Satisfying the strong investor demand for quality hotels such as Swissôtel Sydney is proving a challenge due to a lack of major hotel stock available for sale at present," said Mr Durran.  To date during 2007 $557.8 million worth of major hotels have transacted with several more large deals currently under negotiation around Australia.

The transaction is the second major Sydney CBD hotel sale in as many months with The Avillion Hotel selling for $115 million also through Jones Lang LaSalle Hotels.