Hilton Worldwide has sold prize asset Hilton Sydney to Asian investment house Bright Ruby for AUD$442 million while retaining a significant management agreement to continue to run the property.
“Hilton continues to harvest value in its owned portfolio, announcing plans to sell the Hilton Sydney at attractive pricing in a tax-efficient manner,” the company said in a statement.
“As part of the A$442 million Australian Dollar sale, Hilton will continue to manage this property, subject to a 50-year management agreement.
“Hilton expects to use the proceeds of the sale, net of transaction costs, to further reduce long-term debt,” Hilton said.
The sale to Singapore-based Bright Ruby is the latest in Sydney’s hotel real estate boom and follows the recent sale of Sheraton on the Park for a record AUD$463 million to China’s Sunshine Insurance Group Corporation in November 2014.