Regional hotels at Ray White's May auction day
The May 31 Ray White commercial auction day will take on a regional theme with hotels from Wollongong, Maitland and Picton coming to market.
Blake Edwards from Ray White said the major regional markets are hot spots for hospitality investors seeking yield in growing economies.
"Last year we sold a hotel in Maitland to a very experienced Sydney hotel group for a record Hunter Region price of around $11 million and I think it caused the industry to re-evaluate where there might be better opportunities in the market place," he said.
"Particularly given the quality of the offerings we are showcasing at our May 31 auctions in the form of Maitland CBD's outstanding Belmore Hotel.
"The fact is that a similar quality hotel in Sydney would sell for considerably more than the market price for the Belmore Hotel, and investors are awake to the opportunity to place equity in an investment underpinned by commercial property and strong gaming revenues at more attractive returns," he said.
Also being sold at the Ray White Auction Day is Wollongong's Unanderra Hotel, which is situated on a 3700 sqm land parcel.
Daniel Dragicevich of CBRE said the recent hotel renovation has attracted a new level of patronage to the offering.
"Hotels in close proximity to large, successful Registered Clubs often do very well; particularly in respect of gaming revenues,where the Unanderra Hotel has recently attributed some strategic capital to," he said.
Andrew Jolliffe, director, Ray White Asia Pacific said recent sales are strong evidence of market health.
"With our catalogue of recent on and off market sales over the past 12 months containing several category sale price records, it is not difficult to draw confidence from our strong transactional dealings," he said.
“We’re a business with international representation via a 1000 office network, hence our market receptors are able to provide us with real-time connectivity to the pulse and strength of various commercial property asset classes; and both recent and immediate future sales we are due to announce will underwrite our continued confidence in the sector."
Also being auctioned on 31 May 2017 are several high quality commercial properties, with Head of Ray White Commercial Jeff Moxham tipping the level of interest on the day to be very high.
"Auctions are at the very core of this company's DNA, and have been for over 100 years; accordingly our strategic auction process has seen outstanding results achieved for our valued client base," he said.
"When managed properly, there really is no substitute for this method of sale, and our recent results both in terms of prices enjoyed and clearance rates achieved, bears clear testimony to the high regard and level of confidence in which we hold our strategic auction process" Moxham commented.
Also being auctioned by Ray White's Blake Edwards on 31 May is the George IV Hotel in Sydney's satellite suburb of Picton.
