Laundy Hotels has sold the Bateau Bay Hotel for circa $13m, capitalising on buyer demand for coastal hotel investment opportunities.
CBRE Hotels negotiated the sale of the large format, NSW Central Coast venue after a keenly contested, off market process.
The purchaser was a local north coast hotel group that owns multiple hotel assets in the area.
CBRE Hotels National Director, Daniel Dragicevich and Manager, Ben McDonald steered the sale process and said the sub10% cap rate underlined the strength of the NSW coastal pub market following the recent sales of the Swansea Hotel in Lake Macquarie and the Country Club in Shoal Bay.
“The sale of Bateau Bay, both in quantum of dollars and initial yield, adds weight to the flow of transactional activity in coastal pub markets at levels traditionally reserved for metropolitan assets,” Mr Dragicevich said.
“It makes sense that if the Sydney market is closing in on 8% cap rates, that hotels within two hours of the CBD in markets such as the Central Coast are selling at rates of 10% or sharper.”
CBRE negotiated the sale on behalf of Arthur Laundy and his family who remain firmly invested in the region with assets such as the Crowne Plaza Hotel at Terrigal, Settlers Tavern at Gosford and Long Jetty Hotel in their local stable.
Commenting on the sale, Arthur Laundy said; “It’s been a solid business, but given we have a few projects on the go at present thought it was the right time to sell. We wish the owners the best of luck with their acquisition.”
CBRE Hotels’ Ben McDonald said Bateau Bay Hotel’s solid core trading attributes and significant 27,000sqm site area had been key drivers of interest in the prominent Central Coast venue.
McDonald added; “With forecasts for short term population increases, discretionary spending ratios and future economic outlook in certain coastal areas as positive as that of metropolitan Sydney, we’re seeing no shortage of astute money seeking to invest in these markets."
CBRE Hotels is currently offering the Premier Hotel in Broadmeadow (Newcastle) for sale and expect significant market interest throughout the campaign off the back of continued demand for coastal pub assets.
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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.