TGE has finalized the acquisition of a 50% ownership interest in the Ritz Carlton Perth, a luxury hotel located in the city’s central business district, for an agreed-upon sum of $185 million. The transaction marks a strategic expansion into premium hospitality assets in Australia’s key urban markets.
- TGE acquired a 50% stake in Ritz Carlton Perth for $185 million
- Hotel has 248 rooms and achieved $32 million in gross operating profit in FY2025
- Average occupancy rate of 84% in FY2025
- Projected annual cash flow contribution of $14 million from the stake
- Managed under long-term agreement with Marriott International
- Part of TGE’s broader strategy to expand in premium urban hospitality assets
TGE has officially completed the acquisition of a 50% stake in the Ritz Carlton Perth, a high-end hotel situated in the heart of Western Australia’s capital city. The deal, valued at $185 million, was executed through a structured joint venture arrangement that positions TGE as a major equity holder in one of Perth’s most prominent hospitality properties. The property, located on the corner of St. Georges Terrace and William Street, features 248 guest rooms, premium conference facilities, and a full-service spa, serving both business and leisure travelers. The transaction underscores TGE’s growing focus on high-velocity urban real estate assets, particularly in the hospitality sector. With the Ritz Carlton Perth achieving an average occupancy rate of 84% in the fiscal year ending June 2025 and generating gross operating profit of approximately $32 million, the investment aligns with TGE’s strategy of targeting assets with strong income generation and long-term appreciation potential. The hotel is managed under a long-term agreement with Marriott International, which maintains brand standards and operational oversight. The acquisition is expected to enhance TGE’s diversified portfolio of income-generating real estate, contributing to its target of a 6.5% annualized return on invested capital. Specific impacts include a projected $14 million in annual cash flow from the stake, with additional upside from potential capital improvements and repositioning initiatives planned for 2026. The move also strengthens TGE’s footprint in Australia, where it now holds stakes in four premium hospitality assets across Sydney, Melbourne, and Brisbane. Market analysts note that the transaction reflects increasing institutional interest in Australia’s luxury hotel sector amid rising demand for premium accommodation in major economic hubs. The deal is also expected to influence investor sentiment toward real estate investment trusts and private equity funds focused on hospitality assets in the Asia-Pacific region.