An 81-key hotel close to a stadium being redeveloped for a role in the 2023 Olympic Games has been acquired by the rugby league’s governing body.
The Mercure Kawana Waters has sold to the Australian Rugby League Commission (ARLC) in what has been labelled the largest hotel transaction on the Sunshine Coast in more than five years.
The property was taken to market with expectations of a $20 million sale price. Industry sources said it had transacted at that range.
The sale follows a highly competitive on-market expressions-of-interest process by JLL Hotels & Hospitality Group’s Gareth Closter.
The 81-room and suite hotel “struck a chord with investors given its excellent guest offering and proximity to major demand generators such as the Sunshine Coast University Hospital, which drives an occupancy rate above 84 per cent, and genuine trading upside potential”, Closter said.
He said the ARLC was further attracted to the Mercure Kawana Waters as it is the closest hotel to the Sunshine Coast Stadium, which is soon to be redeveloped as the site of a new international indoor sports centre for the Brisbane 2032 Olympic Games.
It is also used by the Redcliffe Dolphins for some games.
This is the third hotel the ARLC has bought in the past 18 months after the acquisition of the Gambaro Hotel in Brisbane and the Quest Woolooware Bay Hotel.
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The sales process yielded nine offers from local, interstate and international groups with a deal being swiftly finalised, according to JLL.
“This sale further demonstrates the institutionalisation of the mid-market hotel sector with a variety of sophisticated buyers actively seeking such opportunities to add to their existing holdings,” Closter said.
“This asset class has historically had fragmented ownership dominated by private investors, however we seen considerable amalgamation in recent times.”
The ARLC will now partner with Accor to operate the hotel under a franchise deal with the Mercure brand.
Accor Pacific chief executive Sarah Derry said the partnership would make “a positive impact on the tourism and sporting sectors in Australia”.
Meanwhile, the Ibis Budget Windsor and adjoining land has been listed for sale amid strong demand for accommodation investment opportunities in the Games host city.
CBRE Hotels’ Wayne Bunz and Hayley Manvell have been appointed to steer the expressions-of-interest campaign for the Brisbane property, which is on an 3682sq m site and offers 50 hotel rooms, a breakfast room, reception and extensive onsite carparking.
The campaign comes on the heels of the recent sales of the Inchcolm by Ovolo Hotel Spring Hill, Sofitel Brisbane and Quest Chermside—all also negotiated by CBRE Hotels.
“The Ibis Budget Windsor presents an opportunity in one of Australia’s most desirable hotel markets, with Brisbane benefitting from a significant development pipeline, leading population growth, a robust and growing tourism market and world stage exposure via the 2032 Olympics,” Bunz said.
The Lutwyche Road hotel is operated under a hotel management deal with Accor under the Ibis Budget brand but is being offered for sale with vacant possession, providing an incoming buyer with operational flexibility.
There are significant demand drivers within a 1.5km radius of the asset including the Brisbane RNA Showgrounds, the Royal Brisbane and Women’s Hospital as well as Victoria Park, which will undergo a major revitalisation in preparation for the Games.
Manvell said the propert “also encompasses strong future development potential, with the offering including 1582sq m of surplus land area ripe for development”.
“The zoning allows for a variety of uses, including residential, accommodation, retail and commercial (STCA).”
The expressions-of-interest campaign is due to close on March 5.