The leasehold interest in north Queensland’s Airlie Beach Hotel has been sold off-market to ABH Operations Pty Ltd.
CBRE Hotels’ agents Wayne Bunz and Hayley Manvell managed the sale of the waterfront hotel on behalf of the O’Neill family, who have owned the asset for over 30 years. The sale price has not been disclosed.
The hotel is situated within the Airlie Beach CBD and offers three major street frontages, including Airlie Esplanade and Main Street, providing strong foot traffic and high exposure.
“The Airlie Beach Hotel is situated on a significant 8,819sqm site, in what is arguably the CBD’s best location, with never to be built out views across to the Whitsunday Islands,” Mr Bunz said.
The hotel offers multiple income streams derived from 80 accommodation rooms and conferencing facilities, a commercial car park, restaurant, pub, retail liquor store and 35 gaming machines.
It also offers a stable retail rental income and the benefits of an attractive Weighted Average Lease Expiry profile, with the first retail lease expiring in 2022.
Mr Bunz said the purchaser has been attracted by the opportunity to secure a strong cash flow business, with the ability to substantially increase the property’s EBITDA.
“The new operators have a key opportunity to reposition the asset and could immediately elevate returns through optimising the venue’s operations and reducing overheads. We are very excited to see the direction in which the new owners plan to take the asset,” Mr Bunz said.
Ms Manvell added; “There is pent up buyer demand from investors seeking opportunities in Airlie Beach and our greatest challenge is finding stock.”
To capitalise on demand for north Queensland tourism assets, CBRE Hotels will be launching a sale campaign for Long Island Resort in early 2019.
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CBRE Group, Inc. (NYSE:CBRE), 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 2017 revenue). The company has more than 80,000 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.