In a major move that underscores Brisbane’s growing appeal as a luxury hospitality destination, Brookfield Asset Management has announced plans to acquire Hotel X in Fortitude Valley for approximately $90 million. This acquisition reflects the city’s ambitious growth trajectory ahead of the 2032 Olympics.
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Strategic acquisition amid Brisbane’s growing demand
The deal comes at a pivotal time, with Brisbane facing a projected 4,000-room shortfall in the luxury segment within the next decade. Brookfield’s Co-Head of Australia Real Estate, Ruban Kaneshamoorthy, cites strong market fundamentals driving the decision. “With the highest tourism expenditure nationally and its population forecast to grow 40 per cent during the next 25 years, there is a long runway for growth,” he said.
Fortitude Valley’s Hotel X
The 146-key hotel, completed in 2021 by Pointcorp Development Group, is a distinctive white tower with a geometric facade at 458 Brunswick Street. The property features premium amenities, including a rooftop bar and pool, ground-floor restaurant, fitness centre, and conferencing facilities. Additionally, the building includes 1,438 square metres of leased office space, positioning it as a mixed-use asset in the vibrant Fortitude Valley precinct.
CBRE Hotels National Director Wayne Bunz, who brokered the off-market sale with Hayley Manvell, describes the transaction as a milestone for Brisbane’s hotel market. “This transaction is not only a testament to the quality of the asset but also to the strength of Brisbane’s hospitality sector, which is underpinned by rising tourism numbers and a strong economic trajectory,” Bunz explained.
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This acquisition aligns with Brookfield’s broader strategy in the Asia-Pacific region, where hospitality has become a growing focus due to reduced supply stemming from increased borrowing and construction costs. The Canadian-based multinational, which manages approximately $31 billion in assets globally, worked with Ark Capital Partners to facilitate the transaction.
Hotel X has already established itself as a community hub, recently hosting the world’s largest hotel ice bath event on its rooftop. The wellness activation, which transformed the rooftop pool using four tonnes of ice, demonstrated the property’s commitment to innovative guest experiences while raising funds for mental health organisation LIVIN.
Published 11-December-2024