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.