Hotel Sales

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The Gunnedah Hotel has been sold by it's long time owners at a yield of almost 11%.
Nick Butler of Manenti Quinlan held the expression of interest campaign, which offered the hotel on freehold/vacant possession basis.
Located at 298 Conadilly St, Gunnedah the hotel the hotel was purchased by the Gibbs family for $2 million back in 2011.
Set on 2,921 sqm, the hotel has 12 PMEs, a 3am licence and 29 rooms for accommodation.
According to the listing the hotel's weekly average revenue is $38,700.
It was offered by Chris and Kim Gibbs, active members of the Gunnedah community.
Nick Butler of Manenti Quinlan and Associates said the Gunnedah Hotel attracted a very high level of interest from Sydney publicans and "a long list of established country operators."
"Gunnedah is expanding rapidly due to the growth of its industries, and the opportunity to take advantage of that via the Hotel’s passive income streams was particularly attractive to prospective buyers," he added.
The hotel was sold, at an undisclosed price, to established hotelier Daniel Whitten (Robin Hood Hotel, Randwick) and Luke Prout who is already a partner, with Whitten, in the Tamworth Hotel.
Their management of the hotel begins in mid-February.
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Gunnedah Hotel sold at an 11% yield

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<div>The Shakespeare Property Group has settled the $100 million purchase of the Novotel Twin Waters Resort on Queensland’s Sunshine Coast from the Abacus Property Group.</div>
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<div>This is Shakespeare's fifth major hotel acquisition bringing their total room stock to more than 1,200 rooms, this includes two other hotels managed by AccorHotels – Pullman Cairns International and Novotel Oasis Resort Cairns.</div>
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<div>Located between the Maroochy River and Mudjimba Beach, the Novotel Twin Waters Resort site (pictured above) is set on a 36 hectare holding comprised of the low-rise resort with 361 hotel rooms.</div>
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<div>Shakespeare have stated that their current aim is to improve the current facilities to position the resort as a "leading" business events venue and leisure resort in Queensland. </div>
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<div><img src="https://www.urban.com.au/images/2018/9/26/Novotel%202.JPG" alt=""></div>
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<div>Matt Young, Vice President of Operations for AccorHotels in Queensland and Northern Territory said that AccorHotels is proud to strengthen its business partnership with Shakespeare Group.</div>
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<div>The $100 million purchase of the resort comes right as construction of tourism infrastructure on the Sunshine Coast has picked up including the new runway and terminal facilities being developed for Sunshine Coast Airport and two new 5-star hotels approved over the past six months.</div>
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<div><img src="https://www.urban.com.au/images/2018/9/26/Sunshine%20Coast%20Airport.JPG" alt=""></div>
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Shakespeare Property Group has purchased the Novotel Twin Waters Resort

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A historic mansion that is currently run as a restaurant and bar in the Victoria’s Bellarine Peninsula is on the market.
The <a href="https://www.realestate.com.au/property-house-vic-queenscliff-126546886" target="_blank">34-38 King Street</a> property is one of Queenscliff’s iconic buildings and has a $5 million to $5.5 million price guide. 
It previously sold for $2.2 million in 2013, CoreLogic RP Data shows.
According to its description, in 1854, William Leigh, one of Queenscliff's first residents, planned to build the first considerably sized hotel in the region. 
Originally made of fine grade timbers, the first election for the newly established Borough of Queenscliff was held within its walls in 1863 before being destroyed by fire the following decade. The Royal Hotel as we know it today was rebuilt, this time even larger and grander, in the early 1880s.
The Royal Hotel was rechristened Hotel Q after owners Katalin and Stephen Blond went in for a “full-on restoration”, according to the Geelong Advertiser.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/24/RoyalHotel2.jpg" alt="">
Currently used as a restaurant and bar, the ground floor offers a flexible floorplan with multiple zones that can be self-contained for either commercial or residential use. 
The beach house is suitable for various uses. It can be divided into two mansions with separate entrances, transformed into luxury seaside apartments, or used as a restaurant, bar or wedding venue subject to council approval. 
Zoned Residential One, there is the option of developing another building or apartments subject to council approval. 
The selling agents were James Gladman and Lee Botsios of Fletchers.
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Queenscliff's iconic 'Hotel Q' up for sale

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Leading hospitality group Redcape Hotel Group and its 25 pubs have been bought by a Moelis Australia managed fund in a $677 million deal, as it prepares for a public float of its pub fund.
The deal to acquire Redcape and its 25 pubs in NSW and Queensland from US hedge fund owners Varde Partners and York Capital comes at a time when pub values are rising, according to The Australian Financial Review.
Moelis Australia CEO Andrew Pridham said the plan was to float the pub fund in 12 to 18 months.
Most of the Redcape portfolio is in Sydney and includes the El Cortez Hotel in Canley Heights, Minsky's Hotel in Cremorne, the Willoughby Hotel in Willoughby North and the Eastwood Hotel in the eastern suburbs.
Moelis and Redcape had signed a heads of agreement last year, which allowed a <a href="https://www.urban.com.au/expert-insights/investing/50845-moelis-in-redcape-deal" target="_blank">final due diligence</a>.
Redcape was formed after the two US hedge funds snapped up the distressed pub portfolios of National Leisure and Gaming and the Hedley Group when pub values collapsed in the aftermath of the GFC. 
In 2013, they carved out 41 Coles-managed pubs and successfully floated them as Hotel Property Investments (HPI) leaving the remaining pubs up for grabs.
Moelis Australia is funding the acquisition from a combination of existing managed funds, wealthy investors, family offices and Moelis Australia directors and executives.
Moelis Australia will invest $40 million in Moelis Australia Redcape Hotel Group as a strategic investment that will represent a 10 per cent interest in the fund. The fund is forecast to deliver an initial cash yield to investors of 8.75 per cent per annum.
"We know the market well through our investments in pubs since 2014. The attributes of this portfolio is its solid returns and the fact that all the properties are in densely populated areas that will benefit from investment in nearby infrastructure," Pridham was quoted as saying by the AFR.
On the back of the deal and its acquisition of Armada Funds Management, ASX-listed Moelis, raised its forecast underlying earnings (EBITDA) for the year ending December 31 to $29 million, a 25 per cent increase on its IPO Prospectus forecast.
Moelis expects to have more than $2.5 billion of assets under management by December 31.
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Moelis Australia snaps up Redcape Hotel Group's pubs for $677 million 

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The Australian hotel sector recorded deals worth nearly $500 million in the first quarter of 2016 and will continue to grow through the year despite the recent strength in the Australian dollar, says new research. 
Appetite for domestic travel will remain firm and the higher dollar will not be enough of a dampener to discourage overseas visitors travelling to Australia, says real estate firm CBRE’s Q1 Australia Hotels MarketView. 
Cairns and the Gold Coast are expected to remain the star performers of the Australian hotel market after double digit growth in revenue per available room (RevPar) for the year to March 31, 2016.
RevPAR was 15.3 percent for Cairns and 11.3 percent for the Gold Coast in the year to March as a result of record international and domestic travel numbers. 
But not all major markets grew at the same pace, with an increasing divergence between the performance between the resource impacted cities of Perth and Darwin, the major business hubs of Sydney and Melbourne, and the outperforming hospitality markets in Queensland, says the report.
“The mining hubs of Perth and Darwin continue to suffer from the downturn, with Darwin being particularly hard hit due to increased supply levels,” said CBRE Hotels’ research manager Benjamin Martin-Henry. 
“Melbourne is in a state of transition, with occupancy rates increasing but average daily rates (ADR) having fallen, resulting in a drop in RevPAR. Sydney is also in a period of transition, with a slight decrease in occupancy results, although this is likely to be temporary as visitor demand remains strong.”
<a href="/images/2016/08/12/Occupancy%20and%20ADR%20change.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/08/12/Occupancy%20and%20ADR%20change.png" alt="">
 
The report also highlights that Canberra and Hobart have started the year on a positive note, with Hobart benefitting from substantial increases in tourist numbers.
 
However, the country’s key leisure markets in Queensland have been the real standouts.
 
“The Gold Coast and Cairns continue to outperform the rest of the country, posting the highest RevPAR growth rates for any major markets," Martin- Henry said.
 
CBRE Hotels’ Hayley Manvell added that with a lack of new accommodation coming onto the market in both Cairns and the Gold Coast, demand was expected to outstrip supply in the short to medium term.
 
“Investors are likely to be keeping a close eye on these markets and will look to pick up any assets that come up for sale and benefit from the growth in these regions,” Manvell said.
<a href="/images/2016/08/12/Hotel%20sales%20YTD.png" target="_blank">Click to enlarge</a>
 <img src="/images/2016/08/12/Hotel%20sales%20YTD.png" alt="">
 
Overall transaction volumes in 2015 surpassed expectations – and this momentum has carried into 2016, says the research.
 
Major deals included the purchase of the Vibe Hotel, Sydney, by Singapore’s Far East Organisation for $90 million and the Crowne Plaza Terrigal on the NSW Central Coast trading hands for $58 million, being bought by a venture between the Laundy and Karedis families.
<a href="/images/2016/08/12/Key%20deals.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/12/Key%20deals.png" alt="">
 
CBRE national director Wayne Bunz said it remained to be seen whether the slowdown in the Chinese economy and recent gains in the Australian dollar would impact overseas buyer interest.
 
However, he noted that CBRE’s latest Asia Pacific Investor Intentions survey had shown that investors were more likely than ever before to purchase hotel assets.
 
“In our 2015 Investors Intentions survey, just 1% of investors indicated they would be purchasing hotel assets that year. Fast forward 12 months and that interest has jumped to 14 percent, with hotels now ranking as the third most sought after asset class behind office and logistics,” Bunz said.
 
“One of the ongoing constraints will be the lack of purchasable stock and, with high levels of competition pushing up already high prices in Sydney and Melbourne, investors are expected to increasingly focus on opportunities in regional areas.”
 
Bunz added that investors still perceived the Australian hotel sector to be a long term growth play and this was underpinning buyers’ willingness to pay premiums to secure high quality assets.
 
“This is compressing investment yields further, with this trend set to continue over the remainder of 2016,” Bunz said.
 
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