Trophy Brisbane Hotel for Sale

Specialist national agencies Burgess Rawson and HTL Property are set to auction Brisbane’s famed Royal Exchange Hotel in the established river suburb of Toowong.

With a long term triple net* lease to newly listed entity the Endeavour Group (ASX:EDV) until 2068 (inc options); the popular Brisbane watering hole is set across 2453sqm of very valuable commercial property, and is the basis upon which Endeavour Group currently operates 3 retail bottle shop outlets and one of the State’s most famous beer gardens and sports bar.

“The Royal Exchange Hotel is a highly regarded suburban hotel operation and the stability offered by having the nation’s largest hoteliers as its listed tenants is a compelling proposition” advised HTL Property Director, Glenn Price.

With the national market having set an FY21 record at $1.5bn in sales, investment grade opportunities with covenants the quality of Endeavour Group have been seldom offered. However when they have, as was the case earlier this year in the form of the successful sale of Qld’s Pelican Waters Hotel, Edinburgh Castle Hotel, Kedron Park Hotel and The Noosa Reef Hotel; the results have illustrated the willingness of the market to secure high grade opportunities.

“The most recent transactional evidence in the form of the sale of both Queensland and Victorian based assets divested by ALE, has delivered a blended yield of 4.4%” advised Michael Gilbert of Burgess Rawson.

“In terms of this asset class, the unparalleled nature of the tenant, the scarcity of investment grade acquisition opportunities; and the undisputed quality of the Brisbane hotel being sold indicate to us a replication of keen interest is expected” Gilbert added.

Offering a 25 year triple net* lease to 2028 with 4 x 10 year options to 2068 and a current net income of $562,715; The Royal Exchange Hotel enjoys close proximity to the Brisbane CBD, Southbank precinct, Private and Public Hospitals and Universities.

The sale of the Royal Exchange Hotel is being exclusively managed by Burgess Rawson and HTL Property via auction at Melbourne’s Crown Casino and other virtual locations on Wednesday 4 August 2021.

* excludes land tax

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