The transaction encompassed the sale of the entire building including the hotel premises and offices.
"We are pleased to have concluded a speedy transaction, in this instance with Southern Sun which is keen to establish their first hotel in the Rosebank node," said CEO Pieter Prinsloo.
Southern Sun is planning to reopen the hotel under its own brand in the first half of 2012.
Hyprop's future focus in Rosebank remains the planned extensions to The Mall of Rosebank and increasing its retail footprint in this high-growth node. The Grace transaction is conditional on Competition Commission approval.