Prime Hotels to check out of Palm Cove and Adelaide
Prime Hotels to check out of Palm Cove and Adelaide
| 11 October 2016
The Reef House Palm Cove MGallery by Sofitel and the Rydges South Park Adelaide are to be listed for sale via an international Expressions of Interest campaign.
CBRE Hotels National Directors Wayne Bunz and Rob Cross have been exclusively appointed to sell the high profile hotels either separately or in one line. The campaign is being managed on behalf of Prime Hotels – a private company associated with David Horbelt and Malcolm Bean.
Prime Hotels has owned Rydges South Park Adelaide for over 20 years while The Reef House was acquired in 2011 and has since been extensively refurbished.
The successful Reef House makeover is one of the drivers behind the sale campaign, with Prime Hotels now looking at similar strategies for its Mount Lofty House, MGallery by Sofitel property in the Adelaide Hills.
In the case of Rydges South Park the sale plans coincide with zoning changes, which allow for significant development upside.
The Reef House is a boutique, 69-room resort housed in a colonial style building. Set amongst lush tropical gardens featuring 300-year-old Melaleuca gums, the resort includes three swimming pools, the high profile Reef House Restaurant and the multi-award winning Reef House Day Spa.
Situated directly opposite the main swimming beach of Palm Cove, the resort is operated under a management agreement with Accor, however Vacant Possession is available upon sale if required.
CBRE’s Mr Cross said; “The Reef House has long been one of the standout properties in Palm Cove and is the last remaining ‘in one line’ freehold hotel asset on Williams Esplanade. The current owners have done a fantastic job returning the property to its former glory via an extensive refurbishment program which has repositioned the Reef House as one of Australia’s best boutique hotels.”
Mr Cross noted that Far North Queensland was benefiting from a surge in visitor numbers, particularly from Chinese tourists who were only just discovering the Great Barrier Reef.
“This has resulted in double digit RevPAR growth throughout the region and, with limited new supply emerging, the future growth prospects for the Far North has never looked more positive,” Mr Cross said.
CBRE’s Mr Bunz added; “With the North Queensland market back on the boil, the owners are now ready to move onto their new endeavors at Mount Lofty House and have left significant upside on the table for a future owner.”
The listing follows a series of high profile North Queensland hotel transactions, with CBRE Hotels having sold Rydges Esplanade, Rydges Tradewinds and the Novotel Cairns in the past three months.
Also up for sale alongside the Reef House is the 99-room Rydges South Park Adelaide, which features dedicated conference and meeting venues (including the Skyline Events Centre), a rooftop pool, spa and fitness centre and the signature rooftop Skyline Restaurant and Bar.
The hotel is currently operated by Event Hospitality and Entertainment (formerly Rydges Hotels & Resorts) however Vacant Possession is available if required, affording a buyer the opportunity to rebrand, owner operate or renegotiate with Event Hospitality.
“Rydges South Park represents the perfect corporate hotel in Adelaide,” Mr Cross said.
“It trades well above its competitive set due to its highly visible location, its array of function/ meeting facilities and the strong performance of the Skyline Restaurant and Events Centre.”
The hotel occupies a sizable land holding in excess of 3,200sqm in an area of Adelaide that is fast becoming a premium residential address due to its uninterrupted views over the adjacent parklands through to the Adelaide Hills.
Mr Bunz said this was likely to be a key attraction for buyers, who could perceive the hotel as a medium term hold with a strong holding income that could ultimately lend itself to a more substantial redevelopment – be that for a hotel, residential or a mixture of both.
“It is one of the very few opportunities to acquire a well performing hotel asset in Adelaide,” Mr Bunz said.
“The market is devoid of quality hotel offerings at present and the Rydges South Park represents a very popular price point for investors. Recent zoning changes also allow for significant development upside.”
The International Expressions of Interest campaign for The Reef House, MGallery By Sofitel and Rydges South Park Adelaide, closes November 10 at 1.00pm AEST.
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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 (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.