Another Premium Hotel Sale Announced by HTL Property

Leading national brokerage firm HTL Property, in conjunction with Dixon Commercial, is delighted to announce the successful sale of the fully-leased Quest Albury; a trophy freehold investment in one of regional Australia’s most active and geographically strategic growth corridors.

Exclusively marketed by HTL Property Directors Scott Callow and Andrew Jackson (alongside local agent Andrew Dixon of Dixon Commercial), the impressive asset successfully transacted for $28,510,000; reflecting an initial yield of 8.04%. The sale underscores robust investor demand for institutional-grade accommodation assets, particularly those underpinned by long-term leases and strong covenants such as Quest.

Sold on behalf of a locally-based investment syndicate represented by Paul Lachal of the advisory group Lachal Property Group, the transaction attracted significant interest from both private and institutional capital sources – drawn by the asset’s scale, lease profile and prime CBD positioning in the twin-city region of Albury-Wodonga. As the largest and fastest-growing apartment and hotel operator in the Pacific market, Quest continues to attract institutional and private capital due largely to its robust covenant profile and operational scale.

“The Quest Albury is one of the largest properties in the national Quest network on a per-key basis, and enjoys a secure long-term lease to an experienced franchisee through to 2048” advised HTL Property’s National Director of Accommodation, Andrew Jackson.

“With a current net rental of circa $2.25 million, the transaction presents a compelling income play in a region experiencing sustained economic growth” Jackson added.

Occupying a prominent 3,079sqm corner site in the heart of Albury’s commercial precinct, the 104-key property comprises a mix of studios and one-, two- and three-bedroom serviced apartments. It is further enhanced by conference facilities, a guest gym, manager’s residence, on-site parking, and two retail tenancies – 2640 Restaurant & Bar and Endota Spa – both contributing to the vibrant mixed-use offering.

“Sales of investment grade assets of this calibre in regional Australia have seen significant growth in recent years. With the current median price per key up 34.5% over the past five years, and yields tightening across the sector. Existing stock remains keenly sought after in the face of elevated construction costs; and limited new supply” advised HTL Property Director, Scott Callow.

Strategically located midway between Sydney and Melbourne, the Albury-Wodonga region boasts a population of over 100,000 and an economic output exceeding $21 billion. Major investment into local infrastructure, healthcare, defence, manufacturing and logistics continues to fuel population and employment growth – reinforcing the city’s role as a regional commercial and transportation hub.

“The sale of Quest Albury confirms a deepening investor appetite for long-leased accommodation assets in regional growth centres which continue to attract premium interest” added Callow.

“The transaction represents a timely vote of confidence in the strength of Australia’s regional hotel market, and highlights the conviction experienced investors have in respect of the enduring fundamentals of well-performing growth centres such as Albury” concluded HTL Property’s National Accommodation Director, Andrew Jackson.

This sale builds upon HTL Property’s growing track record of national accommodation transactions, further validating the strong performance of the regional investment market for well-positioned, covenant-secure leisure and tourism indexed assets.

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