average of A $ 123 ( US $ 94 ) by 2019 , according to Deloitte .
It ’ s a boom that hasn ’ t gone unnoticed by Chinese developers , who have homed in on Sydney ’ s luxury market . The largest mixed-use development transaction of the year was the A $ 700 million ( US $ 538 million ) Ribbon development site , an acquisition by Chinese Zhengtang Group ( now Greaton ) in Darling Harbour , which will include a 400-room W hotel . Then there ’ s the yet-to-open Wanda Vista in Circular Quay from Chinese-based Dalian Wanda – billionaire Wang Jianlin ’ s A $ 1 billion ( US $ 772 million ) mixed-use
A rendering of the Sofitel Sydney Darling Harbour alongside the city ' s newly opened International Convention Center .
development with a 179-room hotel .
These two deals are indicative of the kind of Australian properties Chinese developers have gravitated toward thus far : prime location , high stock and , in some cases , office conversions – not easy to do in Sydney .
“ In our market , it ’ s still very challenging to transition from office to hotel . Certainly , anyone who has run the numbers on that usually doesn ’ t proceed ,” says Bob East , CEO of Mantra , the country ’ s largest brand operator and third-largest franchise company ( second to Marriott International and
Brewing up
SYDNEY
DEVELOPMENT
Local developer and plastic surgeon Dr . Jerry Schwartz recently dropped A $ 350 ( US $ 268 million ) on the 600- room Sofitel Darling Harbour , his 12th hotel , Sydney ’ s first new-build 5-star hotel in nearly two decades and a component of the city ’ s larger A $ 3.5 billion ( US $ 2.7 billion ) redevelopment , including Darling Harbour ’ s International Convention Center . Schwartz spoke with HOTELS about his larger development plans and love of the game .
HOTELS : Sofitel Darling Harbour is set to open in November . Do you foresee any challenges ?
Jerry Schwartz : Funny enough , parking . We did have a monorail that connected Darling Harbour to the rest of the CBD and in its wisdom the government pulled the monorail down , which was a real shame . But it ’ s now being replaced with light rails . And Darling Harbour ’ s right on the water so people will also be coming by boat . That ’ s really the only challenge and , other than that , it ’ s adjacent to the CBD , it ’ s in a beautiful area , and it ’ s got a brand new , well-designed convention center .
H : What smaller markets do you have your eye on ?
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