The requested news item does not exist. Please return to News
Interest in the hotel market continues unabated with a further $50 million worth of transactions just announced.
Interest in the hotel market continues unabated with a further $50 million worth of transactions just announced. JLL Hotels & Hospitality Group in conjunction with CBRE Hotels have just sold the Oxford Hotel Drummoyne for circa $34 million in the second largest gaming hotel transaction of the year. The imposing venue recently underwent a circa four million-dollar renovation with the sale including an adjacent retail property.
John Musca, National Director – Investment Sales, suggested, "This was another example of a long line of over $200 million of Top 150 ranked gaming hotels that we have transacted this year at a pricing level that reflects asset supply constraints, and earnings growth, more so than yield compression."
The Iris Capital Group owned properties occupy a combined 974 square metre site area with future height development potential and the scope for a rooftop bar with extensive city views. The sale included 30 gaming machines and an impressive new beer garden and basement parking additions. Iris are having a busy year having recently divested their interests in the Crest Hotel, Kings Cross and the Crown Hotel Parramatta for a reported $170 million to Chinese development group, Greenland, who have just commenced sale programs for the residential redevelopments.
"This asset is a rare example of a strong gaming centric venue that also has significant and growing contributions from on-premise bar and food revenues, which is a unique balance reserved for hotels with limited competition in high density precincts" stated Daniel Dragovich, National Director of CBRE Hotels.
In addition JLL announce the sale of the Royal Exhibition Hotel in Surry Hills for a mooted $19 million. "We have handled very few sale campaigns that have attracted the level of interest that the Royal Exhibition did with some 13 inspections, ultimately emanating from its strategic position opposite Central Station and on the proposed new light rail route," Mr. Musca said. "The broad range of bidders recognised the outstanding underlying property and the sought-after Surry Hills trading environment which is very much an investment hotspot for hoteliers presently."
The Royal Exhibition is a 24-hour approved hotel that includes 22 gaming machines, a large outdoor beer garden and terrace, and 14 4.5 star accommodation rooms. The transactions were linked with the private owners Michael Wiggins and Joanne Cassar of the Royal Exhibition Hotel, being the purchasers of the Oxford Hotel.
National Director - Investment Sales
+61 2 9220 8710