Record FNQ Investment Grade Hotel Sale Solidifies Market Depth and Strength

ASX listed Hospitality Property Investments (ASX: HPI) has successfully divested the popular Barron River Hotel freehold in Cairns.

The investment grade asset is leased to a subsidiary of Australia’s second largest pub operator, being a joint venture between Australian Venue Co (AVC) and the Coles Group (ASX-COL).

AVC operate 180+ venues across Australia and New Zealand.

The property is located in Stratford, only 6.8kms* from the Cairns CBD and has operated under the tenure of Coles since 2006 with 16 years remaining (including options).

Leading brokerage firm HTL Property, who earlier this year sold the Acacia Ridge Hotel for HPI, were again engaged for the divestment of the Barron River Hotel and saw over 70 enquiries for the asset throughout the campaign.

HTL Property reported that the sale represents a passing yield of 4.99% (after all costs).

“In what has proven to be a robust market in recent years, investment grade hotel assets are now highly sought by investors across all property sectors, as the hotel industry has exhibited great resilience post the pandemic related travel restrictions; and into the current inflationary and rising interest rate markets” advised HTL Property Director, Glenn Price.

“Internationally recognised tourism centres such as Cairns in FNQ are reporting trading conditions at premiums to pre-pandemic levels, and the government’s recently amended immigration strategy will serve to supercharge both work forces and client bases for destinations such as these” concluded HTL Property Managing Director, Andrew Jolliffe.

End.