Top-Performing Townsville CBD Hotel for sale by HTL Property

Specialist national accommodation brokerage firm, HTL Property, has been exclusively engaged to offer for sale Madison Plaza Hotel Townsville; a popular mid-scale hotel in the heart of Townsville. The Expression of Interest campaign, on behalf of a private family office, will be managed by HTL Property’s National Director, Andrew Jackson; and Queensland Director, Paul Nyholt.

Madison Plaza Hotel Townsville is a 4-star hotel comprising 93 well-appointed rooms and five commercial tenancies. The accommodation is complemented by high quality facilities including an indoor swimming pool, guest lounge with bar, off-site parking and extensive function facilities that can cater for up to 200 people.

“The Queensland accommodation market is demonstrably picking up pace, and there have been some very strong transactions concluded in the state already this year. Investors are flocking back to the accommodation investment market wanting to capitalise on the resurgent tourism market; which, consequently, is driving both revenue and operational growth” advised National Director at HTL Property, Andrew Jackson.

“It is the astute investor who will take advantage of this point in time in the economic cycle; and at which point we are seeing more and more such investors. Demand is strong across a wide range of buyers; from owner-operators and passive, private syndicates – through to experienced hoteliers, institutions and franchises” added Paul HTL’s Queensland Director, Paul Nyholt.

Townsville is considered the Capital of Far North Queensland; it is both a world-renowned tourist destination, attracting over 1.31 million visitors annually and given in its highly attractive accessibility to the Great Barrier Reef. As well as being a major commercial centre, enjoying a diverse local economy which generated over $15.1 billion in 2023. In the year ending April 2024, Townsville recorded an ADR of $180 and RevPAR of circa $110 – both far above pre-pandemic levels.

Madison Plaza Hotel Townsville is superbly positioned in the heart of the city, and within walking distance to all major tourist attractions and amenities; as well as major demand drivers such as the Casino, Country Bank Stadium, Townsville’s “high street” and the bustling commercial port. The excellent positioning of the Hotel ensures it captures a diverse range of clientele, including international and domestic tourists; as well as corporate travellers and local visitors.

Madison Plaza Hotel Townsville is an established hotel offering which generated $2.85 million in Gross Revenue in FYE 2024. It enjoys a diversified income profile; accommodation revenue, five commercial tenancies and extensive function facilities. There exists scope to immediately boost revenues by letting up the vacant tenancies, which would see an additional $140k added to the bottom line. Other value-add opportunities include room refurbishments and expanding the F&B offering.

Madison Plaza Hotel Townsville occupies a high-profile CBD site on the corner of Flinders and Stanley Streets; and also included in the sale, is the parking lot fronting Sturt Street. The combined freehold offering is a substantial 2,091sqm; with flexible zoning which serves to underpin long-term value. The Hotel is located within a 10 minute drive of the busy regional airport, and is also well connected via road – located approximately 1,300km north of Brisbane.

“Townsville has consistently been a focus point for many hotel investment groups given its established tourist attraction offering, and excellent year-round climate. In addition to these compelling features are the diverse economic drivers promoted, including the Lavarack Barracks (Australia’s largest army base), James Cook and UCQ Universities; numerous mining and processing facilities, as well as Townsville’s position as a major centre for both Federal and State Government services, added Jackson.

“We are seeing strong demand for quality accommodation assets in prime locations, and Madison Plaza Hotel Townsville is a perfect example. The investment community is recalibrating mandates back to growth phase strategies, and accordingly, we are seeing increasing numbers of new sector entrants with fresh capital as they recognise the diverse and unique opportunities provided by the hotel asset class” concluded Nyholt.

Madison Plaza Hotel Townsville is being offered exclusively for sale by HTL Property via an Internationally Expression of Interest campaign, closing Thursday, 29 August 2024.

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