Following last week’s announcement of HTL Property’s sale of the Crown Hotel in Surry Hills, the leading specialist agency today confirms the sale of the South Coast’s North Nowra Tavern to a Sydney based hotel group.
The North Nowra Tavern is the last of the four Pub Invest portfolio assets HTL Property recently won appointment to sell, and illustrates the market interest in South Coast NSW assets; the boutique firm having sold Wollongong’s Corrimal Hotel last month for $32.5m.
“Large format suburban hotels are hugely popular with investors, and have been so at an increased level since the beginning of the CV-19 enforced travel restrictions” advised HTL Property Director, Sam Handy.
“The scale and revenue diversification suburban hotels enjoy, is seen as a robust barrier to entry to new participants seeking to usurp market share” Handy added.
In addition to the sale of both the Corrimal Hotel and North Nowra Tavern, HTL Property has now been exclusively selected by Ludlow Hospitality to offer for sale the recently refurbished Five Islands Hotel; situated in the Wollongong Suburb of Cringila.
“We saw last week with our firm’s record regional hotel sale in the form of the Victoria Hotel in Wagga Wagga for $29m to Harvest Hospitality, that investors have begun recognising the value proposition offered by high quality suburban hotels in sub metro locations” advised HTL Property Director, Dan Dragicevich.
“Up until recently, we think the market has mispriced these sub metro hotels, but things have changed demonstrably in this respect over the past 6 months” Dragicevich added.
“With regard the Five Islands Hotel, we see a recently refurbished, full-service hotel operation with a complementary accommodation offering and all the attributes astute investors are searching for in relation to A grade hotel offerings” concluded Dragicevich.
Following last year’s record number of hotel transactions, HTL Property suggests that things are on track for an even stronger year in 2022, with the leading national agency confirming it sold seven hotel assets last week.
“Whilst not alone, we are certainly in the thick of things when it comes to material transactions across the nation, and last week bore testimony to the market strength and appetite” advised HTL Property Managing Director, Andrew Jolliffe.
“We’re thrilled for our clients regarding some of the records being achieved of late, but we’re equally encouraged by the irreplaceable properties we are shortly to bring to market” Jolliffe added.
“We think $1bn worth of assets nationally will change hands this June quarter alone, and we intend to drive that activity on behalf of an industry which deserves the investor adulation it currently enjoys” Jolliffe concluded.
HTL Property is selling the Five Islands Hotel via an Expression of Interest sale process closing on Wednesday 18th May.
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