Queensland’s Largest Hotel Sale for 2021

Another flagship Hotel has been acquired by industry heavyweights Hotel Property Investments (ASX:HPI), and its tenant Australian Venue Co (AVC); in what is the largest Qld transaction this year.

The Surfair Beach Hotel, located at the picturesque Marcoola Beach just 25 mins South of Noosa, adjoins Wyndham’s Ramada Hotel; offering guests a luxurious beach themed fit-out and views of the resort style swimming pool.

The hotel’s five-decade longevity can be attributed to its enviable position, right on the beachfront where it services both local patronage and that of travellers from across Australia.

The Surfair Beach Hotel was sold by HTL Property Directors and exclusive agents Glenn Price and Brent McCarthy, who head up the firm’s market leading Brisbane office.

Having previously sold the Vendor the hotel, it was rewarding for HTL Property to be tapped again to manage the families exit. “It is a credit to the Scanlon family for what they have created at the hotel, and regarding the solid business that has stemmed from their tireless efforts over the last 7 years of ownership” advised HTL Property Director, Glenn Price.

“The business has undoubtedly become one of the leading hotels on the Sunshine Coast during the family’s tenure” Price added.

“The Hotel enjoys all the solid, well rounded business fundamentals that AVC were looking for in a hotel asset on the coast; with the added ability to further expand the multiple revenue streams” McCarthy added.

“In handing the baton to AVC, the business is in safe hands and is certain to continue to grow prosperously into the future” McCarthy concluded.

The property was sold discreetly and by way of an off market sales process, with neither Price or McCarthy prepared to be drawn upon as to the successful sale prices.

“The Queensland market has simply exploded out of the gates this Calendar Year, following on from the high level of transactions towards the end of last year and coming off the back of buoyant trade post the CV-19 shutdown” suggested Price.

“The sheer depth of qualified buyers is the strongest it has been in the last 10 years with every week, new interstate entrants contacting our office looking to conclude transactions. This, coupled with robust interest from seasoned private and institutional groups already in situ, dictates that quality hospitality property is being hotly contested both via on and off-market sales campaigns” added Price.

“With yields still remaining more palatable than many of those in the Southern states, the deal landscape has presented an opportunity for our clients to capitalise on the favourable market topography; and in doing so achieve book value premiums for assets not previously enjoyed” McCarthy offered.

“The main focus for larger private and listed hotel groups has always been for the South East sector of Queensland, however the current level of activity has determined that purchasers are now more willing to investigate larger regional and coastal areas where prized assets that deliver large, consolidated revenue streams such as Surfair Beach Hotel, are more readily available” concluded McCarthy.

HTL Property is currently and exclusively selling two South East Queensland opportunities in the form of The Acacia Ridge Hotel (leasehold); and the freehold going concern of The Willow Hotel Moorooka. With the respective sales campaigns to both close in the coming weeks, HTL Property anticipates further sale announcements to follow.

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