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Eight Hotels secures Sydney property
Released 13 October 2010

Eight Hotels is preparing to open its ninth boutique Australian property after securing a long-term lease over the former Central Park Hotel in the heart of the Sydney CBD.  

CBRE Hotels Manager Andrew Jackson negotiated the Eight Hotels lease over the upper levels of the 185 Castlereagh Street building, which is in the process of being extensively refurbished.

The new Park8 Hotel - comprising 36 oversized rooms & lofts and a European inspired street level coffee bar - will open on October 15 in the latest addition to the Eight Hotels stable.

The fast expanding company was formed in 2004 and now operates an eclectic collection of hotels and apartments located in Sydney, Melbourne, Canberra, Brisbane and Paris. The stable includes a total of 550 rooms in boutique properties such as Sydney’s well known Kirketon in Darlinghurst and Diamant Hotels in Sydney and Canberra.

Eight Hotels’ CEO Paul Fischmann said the former Central Park Hotel gave the company its second Sydney CBD property, alongside the Pensione Hotel in George Street.

“Park8 has afforded us the opportunity to create a spectacular product with large rooms, an exceptional location and our signature design, all with an affordable price,” Fischmann said.

Park8 is located above the New Windsor Hotel in a building that was developed in 1928 and extensively refurbished in recent years. The building is owned by offshore group Wiltshire International Pty Ltd.

CBRE Hotels’ Andrew Jackson said the lease to Eight Hotels coincided with a marked improvement in the Sydney accommodation market over the course of this year.

“The Sydney market has shown an improved performance over recent quarters and, overall, has weathered the recent global downturn very well,” Jackson said.

“This is largely due to the lack of new supply which has sustained occupancy levels at over 80 per cent.

Jackson said the Sydney market was very resilient to any softening of demand due to the city’s varieddemand base, drawing on the corporate, MICE and leisure markets.

“It is because of these fundamentals that the Sydney market remains so tightly held and highly sought,” Jackson said.

“This has been demonstrated by the Eight Hotels lease and the recent sale of the Metro on Pitt Hotel, a115 room, mid market property, which generated huge interest and eventually sold for $24.188 million,
representing a sub 7% passing yield.”