The transaction follows a highly competitive sales campaign, with prospective purchasers attracted by the hotel’s substantial refurbishment, proximity to Sydney and continued earnings growth potential.
Pelathon acquired the property, formerly known as the New Orana Hotel, in mid-2016, from bankruptcy trustee BRI Ferrier acting on behalf of the estate of long-time owner and publican Malcolm Downie.
It proved to be a savvy acquisition for Pelathon, with the group reopening the repositioned hotel later that year after undertaking an extensive refurbishment.
“The creative and pragmatic approach to the refurbishment has yielded a great result for Pelathon, who have bought in and sold out of this asset in approximately 13 months, resulting in a fantastic ROI for the group,” Mr McDonald said.
“Pelathon’s ‘no stone unturned’ approach to this project has not only cemented a loyal community following for the hotel but also positions the incoming owners to build on the solid business foundations that have been laid and further capitalise on the property’s high growth, tourism driven location.”
The sale adds to CBRE Hotels’ impressive track record of coastal hotel asset sales in Lake Macquarie. Previous transactions include the Swansea Hotel to the Laundy family in late 2016 for approximately $13m, with the team currently offering the large format Gunyah Hotel in Belmont for sale via an Expressions of Interest campaign due to close Thursday 17th August 2017.
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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 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.