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News release

Adelaide

A hotel of royal proportions hits the Adelaide market

JLL appointed to sell the freehold and business of the Adelaide Royal Coach


​In a hospitality market starved of quality opportunities across the eastern seaboard, one Melbourne family has listed their hotel site in Adelaide with JLL's Hotels & Hospitality Group. Hospitality Investments Pty Ltd have engaged Mathew George, Vice President – Investment Sales and Peter Harper, Executive Vice President – Investment Sales, together with Managing Director - South Australia, Jamie Guerra, to sell the Adelaide Royal Coach via an Expressions of Interest campaign.

"The Royal Coach represents a pretty unique deal on the national stage. It is a 49 room hotel on a brilliant site which is being sold with vacant possession. It's currently trading at around 75% occupancy and the price point is sub $10 million so investors and developers will see it in that "sweet spot", said Mr George. The property is located on the eastern fringe of the city, within minutes of the CBD. Adelaide is going from strength to strength and deals like this are very rare to come by in any capital city. The last comparable metropolitan hotel/motel sold on the eastern seaboard was just over 12 months ago in Melbourne for $14.5 million, the Clarion Hotel on Canterbury and before that, the Chifley Doveton for around $11 million." Mr George added.

Peter Harper commented that the national hotel market in the sub $15 million bracket is extremely tightly held at present. "Across the country, hotels in strategic locations with good cash flow and development upside are in high demand by local and offshore buyers. Assets such as this, where groups can operate a hotel business for the short to medium term then develop the property and/or increase the room count are particularly attractive," he said. "Adelaide has witnessed huge growth in domestic and international tourism with the airport's passenger movements increasing exponentially since its privatisation in 1998 from 4.0 million up to 7.9 million for FY2016," he concluded.

"We are also anticipating interest from purchasers with the sole purpose of development," said Mr Guerra. "The site area of approximately 2,590sqm over three titles in the Urban Corridor Zone – Boulevard (Key Development Area) suggests local council and authorities are pro-development in this location. It provides plenty of amenity and is within easy walking distance to the CBD," he added.

The hotel is being sold as a freehold going concern (with vacant possession) with Expressions of Interest sought by Thursday 8 December 2016.