KKR has bought the five-star Sofitel Sydney Wentworth in Sydney for A$315m (€204m) from Singapore-listed Frasers Hospitality Trust.

It is KKR’s first foray into a major hotel acquisition in Australia, although it bought a A$200m portfolio in 2019 from a supermarket chain Coles.

“We can confirm that KKR has acquired Sofitel Sydney Wentworth,” said s KKR spokesperson.

“We are excited to invest behind one of Australia’s most iconic hotels in Sydney’s financial district, and to continue working closely with Accor to enhance its offerings to both corporate and leisure guests while retaining its unique qualities and heritage.”

Sofitel Wentworth, a heritage-listed hotel, sits on freehold land and comprises 436 guest rooms and suites with a gross floor area of 33,589sqm spread over 17 levels.

Eu Chin Fen, CEO of the managers of Frasers Hospital Trust, said, “The divestment is in line with our active portfolio management strategy to periodically evaluate divestment opportunities to recycle capital for better returns.”

Frasers group acquired the hotel, built in 1966, for around A$200m in 2014.

To read the digital edition of the latest IPE Real Assets magazine click here.