Perth CBD Hotel Offered With Vacant Possession
SYDNEY, 5 February 2020 - JLL Hotels & Hospitality Group is pleased to exclusively offer for sale the Seasons of Perth Hotel, which is ideally located in the heart of the Perth CBD, close to major corporate and government offices, the legal precinct and retail shopping malls.
The Hotel currently features 120 rooms, swimming pool, restaurant, bar, meeting rooms and car parking on a freehold site. The guest rooms are some of the largest in the city, with an average size of approximately 36sqm.
Having been recently refurbished and offered with vacant possession, the Asset offers investors the opportunity to reposition the Hotel and benefit from the likely substantial uplift in profitability. There is also significant development potential, with a generous land size of 1,973sqm and a previous development approval for expansion of the existing 120-room hotel by an additional 70 keys to 190 rooms (STCA).
“The Seasons of Perth Hotel is being offered with vacant possession, presenting investors and owner-operators with branding and management flexibility, a prime central location, and the potential to refurbish and reposition the Hotel to an upscale boutique or lifestyle hotel product with commensurate uplift in ADR and NOP” noted Mark Durran, Managing Director of JLL Hotels & Hospitality Group.
Conveniently located on the western side of Pier Street midway between Murray and Hay Streets within the eastern periphery of the Perth Central Business District and retail precinct. To the east of the Hotel is the newly opened Westin Perth and to the west is the exclusive 5-star Hotel Como.
As the international gateway and administrative core of Western Australia, Perth is a flourishing city undergoing rapid evolution and growth with WA’s forecast economic growth of 3.5% in 2019-20 and 3.0% in 2020-21, and the highest level of business confidence in recent years. The lodging market is also expected to benefit from increased investment from state tourism bodies, in its 2018-19 Budget the State Government has pledged $425 million for investment in destination marketing and event tourism over the next five years. This will be achieved by attracting more overseas direct flights to the expanding airport, aggressive branding and co-operative marketing, highlighting Optus Stadium’s multiple events and hosting major trade events.
Perth has a number of world-class infrastructure projects that are underway to broaden the city’s appeal including Riverside, Perth City Link, the Western Australian Museum and Elizabeth Quay attracting investment worth approximately $8.5 billion dollars across all developments. One of the largest contributors touted to benefit the Perth accommodation market is Perth International Airport’s $2.5 billion expansion program that will allow it to keep pace with forecast passenger demand. The plan includes the expansion of the international terminal, consolidation of all terminals to the eastern side of the airport, additional taxiways, and a new parallel runway.
Total passenger arrivals to Perth Airport surpassed 4.6 million during YTD September 2019 on the back of new flight routes and increased capacity from key destinations. Qantas introduced the first non-stop flight between Europe and Australia with their new Perth-London route in March 2018, and Singapore Airlines added a further 38,000 seats on their Singapore-Perth route. Singapore is WA’s second largest international tourism market, and second largest by visitor spend, contributing a total of $252 million during FY 2019, a growth of 13.5% year-on-year.
“The Hotel is being offered to the market at a time when economic growth and business confidence indicators point to positive momentum in the WA economy. This trend is especially evident in CBD commercial office vacancy rates, which have been falling in recent years. This increase in economic activity occurs at a point where the disparity in values between Perth and eastern states markets are at historic levels making Perth assets a compelling investment alternative” said Mr Durran.
“The positive outlook and market sentiment has also been reflected in the increased hotel transaction activity in Perth over the past 18 months as investors position themselves for future long term growth,” added Nick Roche, JLL Hotels & Hospitality Group.
The Seasons of Perth is being offered for sale via Expressions of Interest. For further information, please contact JLL Hotels & Hospitality Group.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.