Business Don't miss out on the headlines from Business. Followed categories will be added to My News. French hotelier Accor has signalled its desire to expand its luxury portfolio in Australia, with hopes for new Sofitel and MGallery properties on the agenda.
Maud Bailly, chief executive of Sofitel, MGallery and Emblems brands, flagged the chain’s ambitions after the relaunch of the Sofitel Sydney Wentworth, saying that the safe haven of luxury real estate was being chased by investors globally. The hotelier’s vision was backed in Sydney by the hotel’s owner, private equity group KKR, which in 2021 supported a venture between local firms Futuro Capital and Marprop, that bought the ageing property in 2021 in a counter-cyclic play for $315m. They have since heavily invested in overhauling the property, punting that five-star luxury hotels will prove the best bet in the long-term, even as spending by Chinese tourists remains subdued.
The Sofitel Sydney Wentworth officially reopened last week after a $70m renovation intended to blend French luxury with its local heritage as one of the country’s most iconic hotels. Ms Bailly said the renovation was emblematic of a rejuvenation program taking place across the Sofitel brand globally and bringing the brand back to prominence. First opened in 1966 by Qantas, the Sofitel Sydney Wentworth has long been prominent in Australia, hosting celebrities and dignitaries including Princess Diana and Prince Charles, Queen Elizabeth II, Sop.