The freehold interest in one of Dubbo’s best-known city hotels, The Quest, has been listed for sale on behalf of a private investment syndicate managed by Findex Financial Advisors.
The CBRE Hotels team of Raymond Tran and Tom Gibson has been appointed to market the Bultje Street serviced apartment hotel, which opened in 2011.
The hotel is situated on a 2,029sqm landholding and is subject to a long-term lease under the national Quest branding.
Mr Tran said Quest’s quality brand offering and substantial, long-term lease would be a considerable drawcard for investors.
“The property is one of the leading accommodation offerings in Dubbo and is one of the city’s few nationally branded hotels,” Mr Tran noted.
“With a current rental yield of 8% under a strong covenant, this Quest Dubbo opportunity will be a good litmus test of the hotel investment market.”
Quest Dubbo will provide an incoming investor with a significant yield premium to its capital city cousins and one that is substantially above the current cost of debt.”
The hotel benefitted from a refresh in 2019 with upgrades to the bathrooms, kitchens and balconies. It comprises of 42 rooms - spanning one, two and three-bedrooms - with a restaurant and conferencing space also available.
CBRE’s Mr Gibson said the hotel’s location would be another buyer drawcard, with $5.3 billion in investment and construction projects earmarked for the region in the next six years according to Dubbo Regional Council. A $250 million extension of Dubbo Hospital is also underway.
“The hotel benefits from a strong commercial support base with numerous medical, government, agricultural and educational facilities in the area,” Mr Gibson noted.
“The city also has a large population of more than 50,000 people, with the wider region that it services extending to an estimated 120,000 people. This will ensure that Dubbo will remain the significant commercial and retail hub of the west, underpinned by the fact that - outside of regional coastal markets - Dubbo recorded the strongest growth rate in NSW house prices of 8.7% in the six months to September 2020.”
The Expressions of Interest campaign for The Quest closes 1 April 2021.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
