Grand Hotel Armidale Sold

HTL Property’s Xavier Plunkett, in conjunction with Leonard Bongiovanni (MQ) is pleased to announce to the market the sale of the Freehold Interest in Armidale’s Grand Hotel.

The hotel was sold within the first week of the EOI campaign. Vendor for the hotel is Steve McEvoy, who separately holds a stable of Freehold Hotel investments on the NSW Mid-North Coast.

The Purchaser is a newly formed partnership between Harley and his son,Tom Payne; highly regarded owners of the St Kilda Hotel in Armidale.

“We are delighted with the acquisition and feel it will be a good long-term investment for our family” advised Purchaser Harley Payne.

“Obviously we have the capacity to run the venue in the future should the opportunity arise, however right now we are very comfortable with the current passive rental return” Payne added.

The prominent brick Hotel features a public bar, bistro, gaming room, beer garden, car park with 22 carparks on title. The asset is situated upon 1667m2 of valuable land located on the corner of Rusden Street and Ohio Street, with 56.1m* of street frontage.

The Hotel is strategically located 800m from Armidale CBD; 400m from Armidale’s industrial district, and only 200m from Armidale Hospital. The hotel is currently producing $109,200 in annual rental revenue with increases to $151,800 by August 2022.

The sale price represents a yield of Circa 5.15% by mid-2022.

“The purchaser was attracted to a combination of the stable and secure rental income, the underlying asset value; the geographical proximity to their current assets in Armidale, and the positive economic sentiment enjoyed in the region” commented HTL Property Director, Xavier Plunkett

“The price was largely in line with the advertised price expectation; and which was representative of the underlying asset value of the gaming machine entitlements, the land, and the quality brick building” added Bongiovanni.

“The sale is indicative of an extremely strong regional Hotel market, particularly in the New England Region; which has seen $110 million worth of Pub sales in the past 18 months alone” concluded Plunkett.

End.