Langham buys Sydney’s Observatory

Exterior of The Observatory Hotel
Exterior of The Observatory Hotel

Langham Hospitality Group secured its first flag in Sydney with the acquisition of The Observatory Hotel on Wednesday.

Great Eagle Holdings, Hong Kong, bought The Observatory Hotel for about A$40 million (US$39.7 million) from Orient-Express Hotels, Hamilton, Bermuda. Great Eagle’s wholly owned subsidiary Langham will manage the 96-room property upon the deal’s closing in August.

“Strategically, this purchase signals the group’s plans for long-term expansion in the Pacific region,” said Brett Butcher, Langham Hospitality Group CEO. “The Observatory Hotel’s Georgian architecture reminiscent of a grand 19th century Australian home fits perfectly with the timeless Langham brand.”

While Langham is already present in Australia with The Langham, Melbourne, the sale marks the exit of Orient-Express from the Australian market.

“Orient-Express believes in the long-term potential of The Observatory Hotel, but it was not core to the company’s continuing business strategy. It will be acquired by a world-class company that we are confident will make for a successful owner and employer that is committed to the hotel and its future,” said Philip Mengel, Orient-Express’ interim CEO.