Leading Queensland Hotel Group Trigger Divest to Expand Strategy

Powerhouse Queensland hoteliers, The Comiskey Group, are set to test the national hotel market with the Beachmere Hotel.

Located equidistant between Brisbane and the Sunshine Coast, the Hotel and adjoining shopping centre were constructed by the group in 2009. Having sold the shopping centre some time ago, the Hotel has operated under the Comiskey Group banner since inception.

“We find ourselves primarily focused on the operation of our larger hotels at Sandstone Point, Samford Valley and Eatons Hill; with over $200M of new developments in the planning stage, including 4 greenfield large format entertainment hotel venues in South East Queensland” advised spokesperson for the sale, Robert Comiskey.

“Hence, our time and focus has been appropriately redirected into our other venues and development pipeline, rendering it now appropriate for the group to test the market with the Beachmere; a consistent performer for us over the last 12 years” added Mr Comiskey.

“Excluding Beachmere, our other hotels are definitely not for sale as we have a long term strategy for the industry; and will continue to renovate and expand our current holdings in addition to activating the 4 new Greenfield venues” Comiskey concluded.

National market share leading agency, HTL Property, have been selected to facilitate the divestment campaign through a national Expression of Interest process. Queensland Directors Glenn Price and Brent McCarthy, along with Sydney based Managing Director Andrew Jolliffe will coordinate the sale strategy.

The Beachmere Hotel offers patrons a relaxed and themed beachside locale with numerous bar and dining experiences encompassing a fluid floorplan that lends itself to well-rounded revenue streams.

The Hotel layout incorporates a large public bar and TAB area with multiple indoor and outdoor dining areas; a lounge bar and gaming lounge housing 30 very valuable Gaming Machine Authorities, and the only off premise drive-through bottle shop within the immediate region. Ample car parking further complements the operation.

“The Beachmere Hotel arguably enjoys a captive market of some 4,500+ proximate residents and is the only hotel servicing the immediate area” suggested McCarthy.

“With a robust increase of development projects reaching the areas surrounding Beachmere, such as the North Harbour Development; Beachmere is itself set to continue to benefit from the advancement of this patent urban sprawl” added McCarthy.

“The Beachmere Hotel will appeal to multiple sectors of the market, with an enviable revenue stream and bottom line. It is therefore expected that a wide spread of corporate groups, large pub syndicators and private family vehicles are likely to be drawn to the asset” McCarthy concluded.

HTL Property’s last three sales have been in Queensland, Victoria and NSW respectively; illustrating the enlivened national transaction landscape.

“The advancing march north by hoteliers from NSW and Victoria as well as in-situ Queensland operators, many of whom are in ‘acquisition mode’, will continue to drive the sector into the second half of the year” believes HTL Property Director, Glenn Price.

“Efficient cost of capital is currently the primary market motivator, with no change likely for the foreseeable future” Price added.

“This, coupled with the prosperous spread between cost of borrowing and current market yields, will ensure buoyant market trade-winds will continue to be enjoyed by both buyer and seller respectively; and for some time to come” Price proffered.

The sale process for the Beachmere Hotel commences following HTL Property’s trifecta of respective national market sales to:

– Justin Hemmes (Tomasetti House – VIC);

– AVC (Surfair Tavern – Qld) and

– Martin Short/Sean O’Hara (Moonee Beach Hotel – NSW)

“The asset class is projecting its best year of transactional activity nationally at in excess of $1.3bn; and as foreshadowed, there’s been a definable contraction in yields commensurate with the increased activity” advised HTL Property Managing Director, Andrew Jolliffe.

“To surpass $1.3bn in sales following the broad challenges faced by all asset classes in 2020 is remarkable, and to do so requires a buyer universe prepared to look beyond the typical geographical boundaries” added Jolliffe.

“This market and contemporary buyer profile lends itself favourably to outstanding opportunities such as the Beachmere Hotel” Jolliffe concluded.

HTL Property are the exclusive agents for the Beachmere Hotel EOI sale process concluding 30, June 2021.

End.