Waterfront Port Macquarie CBD Hotel Sold by HTL Property on Sharp Yield

HTL Property is delighted to announce the sale of the freehold interests in the Mid Pacific Motel, located in the Port Macquarie CBD. The Property was brought to market by HTL Property’s National Accommodation Director, Andrew Jackson; and Paul Nyholt, the QLD Accommodation Director.

Mid Pacific Motel was sold following an International Expression of Interest sales campaign; which generated huge interest.

“We were blown away with the level of interest for this asset, it was quite extraordinary” commented HTL Property Director, Paul Nyholt.

“Within the first 48 hours of launching, we had received around 50 enquiries; and that number topped 300 by the conclusion of the campaign. Probably double what we would ordinarily anticipate” Nyholt added.

“The asset holds a prime waterfront location and is quite an icon in the region. Accordingly, we think the photography that captured the spectacular positioning had people imagining the possibilities. It demonstrates that there is a huge underlying investor demand for well positioned leisure assets with demonstrable upside” Nyholt concluded.

The well received campaign secured ten competitive bids from a broad cross section of buyers, with a number of offshore parties also declaring interest in the asset.

The asset ultimately sold for a price around $9m, reflecting a sharp 4.34% yield. The purchaser has been identified as a local syndicate of investors; with the transaction expected to settle this month.

“We were thrilled to receive the level of interest and competitive bidding that resulted for this mid scale accommodation asset. The sale remains a strong reminder that despite dissipating economic challenges, exceptional assets will always hold appeal; and there remains a strong pool of buyers seeking well positioned hospitality assets” commented HTL Property National Director of Accommodation, Andrew Jackson.

“The asset ultimately sold to a local syndicate, but we fielded interest from both across the country and abroad. While domestic buyers dominated transaction activity in the accommodation hotel sector in 2023, we expect to see renewed interest and deal flow to offshore investors this year, particularly from Asia” Jackson added.

“There exists positive sentiment within the hotel sector as a whole compared to other asset classes, and we are already in advanced discussions with some of our under-bidders on other hotel opportunities” concluded Jackson.

End.