Cairns, 10 September 2014 – The Hotel Cairns is to be offered for sale via an Expressions of Interest campaign. Danny Betros and Wayne Bunz of CBRE Hotels have been appointed to sell the freehold interest in the hotel under instruction from Receivers and Managers, Glenn Miller and John Goggin of BRI Ferrier, NQ Pty Ltd.
The sale represents an exceptional opportunity to acquire one of Cairn’s longest established hotels and a rare CBD offering substantially below replacement value. The 4 star hotel with traditional ‘Queenslander’ architecture is less than 200 metres from the famous Cairns Esplanade and offers 92 well-appointed guest rooms as well as extensive recreational and business facilities.
CBRE Hotels Senior Director Wayne Bunz said that there had been significant interest of late from hoteliers seeking to secure a foothold in the Cairns hotel market.
“The Hotel Cairns has been owner operated in the past and offers vacant possession with significant appeal to first time buyers as well as hotel chains who are actively seeking to establish their brand in Cairns and can utilise their distribution networks, especially to tap into the record amount of Chinese visitors flocking to the city,” Mr Bunz said.
Mr Betros noted; “The prominent location of the hotel as well as the rebound of the Cairns market and record occupancy levels is expected to underpin buyer interest. The inner CBD Cairns hotel market is highly sought after and tightly held, making this a rare opportunity,”
“Whilst the hotel enjoys strong occupancy levels it has the potential to raise rates and improve profitability with the right operator,” Mr Betros added.
The Cairns hotel market is greatly outperforming all expectations and in financial year 2013 had the second highest REVPAR growth in the country at 12.1%, with the growth resulting from increased demand and strong rates. The Cairns market is going from strength to strength with airport arrivals hitting a peak of 4.5 million passengers in financial year 2014. The city attracts international visitors predominantly from Asia, most notably China and Japan, Europe and the Americas and has become a favorite domestic destination particularly from Melbourne, Sydney and Brisbane.
Mr Bunz tipped that the campaign would attract particularly strong enquiries from South East Asia given Cairns proximity to Asia.
“In recent times there have been a considerable number of Australian hotel transactions involving offshore investors from Asia who are looking to enter the highly viable Australian hotel market and gain brand profile in one of Australia’s most popular tourist destinations,” Mr Bunz said.
The Expressions of Interest campaign closes October 22nd at 12:00pm AEST.
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