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News release

Melbourne

Freehold hotel gem in a thriving tourism and corporate market

Four-star Phillip Island Apartments to be for sale


One of regional Victoria's best performing boutique accommodation assets, Phillip Island Apartments, is being offered for sale for the first time since being developed in 1999. JLL's Hotels & Hospitality Group's Mathew George and Peter Harper have been exclusively appointed to manage the sale which represents the freehold interest of strata titled apartments within the fully integrated four-star accommodation complex.

Just 90 minutes south-east of Melbourne, Phillip Island boasts serene landscapes, pristine beaches and a multitude of recreational offerings. As such it appeals to, and economically benefits from, a wide range of domestic and international visitors.

Centrally located within the commercial and tourist hub of Cowes – the unofficial capital of Phillip Island, Phillip Island Apartments comprises 32 keys containing a mix of two and three bedroom luxury apartments and is near the region's main retail, dining and entertainment precinct, beautiful recreational beaches, and within easy travelling distance of Phillip Island's many attractions including the Penguin Parade and internationally renowned Phillip Island Circuit which plays host to the MotoGP and V8 Supercars annually.

"Benefitting from its central positioning, the property's size, offering and amenity ensures it enjoys strong year round trading performance. For the year-to-date June 2015, the property recorded an average daily rate (ADR) increase of 2.8% and a growth of 6.7% in occupancy." said Mathew George.

"Unlike numerous other assets in the region which have been the subject of receivership sales in recent years, this asset has been a proven and strong performer from its very first day."

"The target price point, attractive yield and strong management team in place will appeal to a wide range of local and international investors. An incoming owner will benefit from excellent asset fundamentals and a robust trading outlook." suggested Mr George.

Peter Harper said, "In peak season, Phillip Island is one of the most popular holiday destinations in Victoria for Melburnians, while in the off-peak periods the property thrives on corporate and MICE related demand bookings such as BMW, Porsche, Mercedes, Yamaha and Ducati, all staying nearby the world-renowned Phillip Island Race Track and Grand Prix Circuit."

At year-end 2015, a total of 2.3 million visitor nights were spent in Phillip Island. The islands' annual Penguin Parade alone drawing over 600,000 visitors seeking to experience Australia's largest little penguin procession. The island is a major destination for international tourists and has witnessed strong growth in visitor nights in the past five years with an average annual increase of over 21%.

Recognising the importance of Phillip Island's contribution to Victoria's overall visitor economy, the government is committed to improving the tourism offering of the region with the Regional Tourism Infrastructure Fund pledging $58.2 million to the redevelopment of the Penguin Parade Visitor Centre at Phillip Island.