Iris Group has kicked off 2016, purchasing a Parramatta hotel “as a development” for $38 million.
Located a stone’s throw from Rosehill Racecourse, the Mercure Parramatta boasts 165 rooms atop a bar, recreation and function spaces.
The Australian implied Iris paid too much for intentions to continue operation in its current form, and reported “sources” as suggesting Sam Arnaout’s company may convert the accommodation rooms into residential.
PubTIC spoke to Iris Group, which declined to comment on the subject at this stage.
Colliers International’s Gus Moors and Harry Bui managed the transaction, but could not be reached for comment or further details.
Iris Group currently operates two hotels in the Parramatta region, and is executing a redevelopment.
Last year it divested the newly redeveloped Oxford Hotel in Drummoyne for $34 million, and sold the Mercure complex in Potts Point to a Chinese consortium for a reported $170 million.
Iris also purchased Kings Cross’ iconic Bourbon Hotel, then later the adjacent backpackers building, and then the Empire Hotel – opening potential for a massive redevelopment of the block, which is haphazardly transforming from red-light to gentrified residential.
Parramatta is experiencing incredible levels of development, with cranes punctuating the horizon, each working toward high-rise accommodation and residential constructions.
