The Rocksia Hotel has been sold for $36 million after less than two weeks on the market.
CBRE Hotels sold the landmark Arncliffe property on behalf of Feros Hotels. It was purchased by Oscars Hotels, headed by brothers Bill and Mario Gravanis.
Once a former car showroom and sale yard, the property was converted into a large format suburban hotel some ten years ago by Nick and Chris Feros with long-time business partner Bob Richards. It is positioned on a large 4,218sqm island site on the Princes Highway, adjacent to the Banksia Train Station.
CBRE Hotels Daniel Dragicevich and Sam Handy negotiated the sale, which exhibited a sub 8% yield reflective of the high cash flow operation, as well as the site’s future development potential and location within the burgeoning Wolli Creek to Rockdale growth corridor.
Feros Hotels new greenfield venue, the Prince Hotel in Kirrawee, recently took out the highly coveted Hotel of the Year Award at the NSW AHA awards and at the same awards ceremony, Bill and Mario Gravanis were inducted into the AHA Hall of Fame, joining other esteemed hoteliers such as Arthur Laundy, Justin Hemmes and Cyril Maloney.
CBRE Hotels National Director Daniel Dragicevich commented; “It was a pleasure to be involved in a deal between two of the hotel industries true stalwarts and the price achieved is a testament to the vision the vendors had a decade ago.”
“Hotel sites with development potential is an emerging market subset which a growing number of astute groups continue to assess quite aggressively as a natural hedge against traditional hotel operations on which valuation can be more reliant upon sustainability of income as opposed to property value,” Mr Dragicevich added.
This sale continues a bullish 18 months for the New South Wales pubs market which has seen in excess of $900 million worth of top tier Sydney pubs transact across 36 separate transactions.
CBRE Hotels NSW Director Sam Handy added: “The market has been incredibly buoyant over the last 18 months given the well-publicised sell down strategies of Lantern Hotel Group and the Australian Pub Fund, and we’ve seen significant yield compression across the board. Nonetheless, we expect that favourable market conditions will continue to underwrite strategic investment in pubs as an asset class into 2018 and beyond.”
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