Melbourne, 10 April 2016 – Kildair Hotels Group is moving to sell the Mercure Hotel in Geelong amid strong ongoing demand for hospitality investment opportunities.
CBRE Hotels’ Rob Cross and Scott Callow will steer the Expressions of Interest campaign for the prominent port city hotel, which is expected to attract significant interest from private investors and owner operators.
“Last year, a record $2.6 billion in Australian hotels changed hands and this momentum has carried into 2016,” Mr Cross said.
“One of the ongoing constraints has been the lack of purchasable stock and, with high levels of competition pushing up already high prices in Sydney and Melbourne investors are increasingly focused on opportunities in regional areas.”
Opened in 1971, the four-star hotel comprises 138 guest rooms and suites in addition to a restaurant and bar, various meeting and function rooms, an outdoor pool and spa, gymnasium and 24 hour reception.
A consistently strong performer, the hotel is situated on a 5,991sqm site in the centre of Geelong – Victoria’s second largest city. The large site size allows for future development, subject to the relevant planning approvals.
CBRE’s Mr Callow said Geelong was home to numerous government departments such as the Transport Accident Commission, WorkSafe, Health and Community Services and the National Disability Insurance Agency.
“As such, Geelong is a busy centre for a significant workforce, which underpins business visitation,” Mr Callow said.
“The popularity osf Geelong for government and corporate activity is matched by a year round sports and events calendar, which has helped to underpin the Mercure Hotel’s strong trading performance.”
Owner operators are expected to show particularly strong interest in the sale campaign, given that the existing management agreement with Accor expires mid next year.
“The ability to achieve vacant possession will be particularly appealing to owner operators, many of whom are looking to expand their networks given the continued improvements forecast for the Australian hotel sector,” Mr Cross said.
CBRE’s Q1Australia Hotels MarketView report tips that appetite for domestic travel will remain firm and that the higher dollar will not be enough of a dampener to discourage overseas visitors travelling to Australia.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
