Specialist national brokerage firm HTL Property is delighted to announce the successful sale of the Mercure Centro Hotel located in Port Macquarie, one of Australia’s fastest growing coastal cities; and most sought after NSW tourist destinations.
The off-market transaction, brokered by HTL Property’s Andrew Jackson, Andrew Jolliffe and James Carrick, saw long term owner HLF Pty Ltd sell its freehold going concern hotel to market leading hoteliers, the Laundy Hotel Group.
“Whilst not housed in the same equity structure as our other beachside accommodation assets in Noosa, Manly and Terrigal; this coastal property intersects perfectly with our national investment objectives, and adds deftly to the growing portfolio” advised Purchaser, Stu Laundy.
“We have decided to team up with local hospitality operator Alistair Flower, who is so very highly regarded in the region” Laundy added.
The 4.5 star, 72 room corporate hotel is located in the very heart of Port Macquarie’s commercial, retail and entertainment precincts. Constructed over five levels, the hotel offers a range of facilities, including an extensive restaurant and bar, licenced rooftop leisure/event area, an expansive conference area, secure underground parking for 86 vehicles, swimming pool and day spa; plus two retail outlets on the ground floor.
The property has been owner occupied and indexed to a franchise agreement in place to Accor Hotels, under the Mercure brand since the hotel’s opening in 2007. The uncomplicated corporate hotel ticks every box in terms of scale, quality and diversified income attributes.
Port Macquarie has recorded consistently high visitation statistics due to its enviable climate and proximity to both Sydney (only 4hrs drive) and Brisbane (6hrs drive). The region enjoys a diverse economic profile, underpinned by industrial trade via the port, as well as the predominant revenue lever being world class tourism and business. Substantial infrastructure investment includes major highway upgrades, $12 million recent airport upgrades with further expansions planned; and the new $30 million Glasshouse Convention and Entertainment Centre.
“This powerful suite of economic generators, when combined with an established tourism profile, speaks volumes for the ongoing strength and vitality of the entire mid and far north coast of NSW” advised HTL Property Managing Director, Andrew Jolliffe.
“The mid-market accommodation sector has shown demonstrable improvements in trade over recent months, and none stronger than true coastal city centres, which very efficiently capture corporate and leisure travellers alike” commented Jolliffe.
“The Port Macquarie accommodation market enjoys an extremely prosperous outlook with virtually no new supply; and an enviable variety of demand drivers that we submit will continue attracting investors and tourists to the region” Jolliffe added.
The tourism industry was one of the hardest hit as extensive and repeated lockdowns brought travel to a standstill, however it is also the industry with the strongest recovery prospects. Tourism Research Australia (TRA) forecasts the number of domestic overnight trips will increase by 21% over 2022-2023; and surpass pre-pandemic levels by 2023-2024. Accelerating the recovery of the domestic tourism market is visitor expenditure, which is forecast to grow by an average 5.9% each year until 2025-2026; and consequently, to reach $127.7 billion in receipts. Well in excess of the previous 2019-2020 peak.
“Domestic tourism enjoys incredibly strong growth forecasts, as there exists a virtual tidal wave of pent-up demand for travel due to extended lockdowns and restrictions. Combine this with rising consumer confidence, steady vaccination rates, government incentives and substantially increased household savings due to a lack of spending opportunities during the CV-19 affected years, and Australians are just busting to travel” remarked HTL Property National Accommodation Director, Andrew Jackson.
The TRA reported that Australians spent approximately $65 billion on international travel in 2019 (pre-pandemic); and their predictions are that overseas travel is likely to remain subdued due to continued border closures, perceived greater health risks abroad and complexity around quarantining requirements between countries. Material components of this $65 billion spend will likely be redirected into domestic travel in the short to medium term; before a level of certainty returns regarding overseas travel.
“This is an unprecedented boost to the domestic tourism industry, and a once-in-a-lifetime opportunity for astute investors to snap-up assets such as Mercure Port Macquarie; which are sure to benefit” added HTL Property Director, James Carrick.
“Mercure Port Macquarie promotes a strong and steady history of profitability and growth; with ongoing revenue growth forecast in the current financial year. When underpinned by the resurgent domestic tourism industry and a number of value-add opportunities available, we anticipate the trading performance of this asset will continue in both an upward and robust trajectory” concluded Jackson.
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