Canberra's newest hotel development comes at opportune time for operators or investors
Canberra’s continued performance as one of the nation’s strongest hotel markets has sparked the sale or lease of a brand new serviced apartment hotel in the suburb of Campbell.
24 May 2018
CBRE’s Michael Heather, Adrian Woolgar and Rob Cross have been exclusively appointed to market for sale or lease the serviced apartment hotel, which is located at Block 1, Section 131, Campbell. The site is well-located close to the Canberra CBD, national tourist attractions and the Russell Offices.
Expected to open and be trading by December 2020, the development will comprise a four-star, seven-level serviced hotel, accommodating 139 serviced apartment rooms.
The property is being offered for sale or lease on a ‘turn-key’ basis – providing an opportunity for either a new operator to buy or lease the premises, or an investor the opportunity to source its own management.
Located approximately 1.3km from the CBD and 5.5km from the Canberra International Airport, the development - encompassing a total floor area of 12,714sqm - will also include 11 commercial tenancies, ground and upper lobby areas.
This opportunity follows a period of strong continued performance in the Canberra hotel sector, with its Revenue Per Available Room (RevPAR) lifting 5% in the first quarter of 2018 - surpassing both Sydney and Melbourne, new CBRE Research shows. The growth is partly attributed to a 19% increase in international tourists overnighting in hotels across the city.
CBRE’s ACT Managing Director Michael Heather said the opportunity to secure a stake in Canberra’s hotel market would attract widespread buyer interest.
“Canberra offers compelling investment fundamentals, given its robust business environment – supported by the highest employment growth in the country – and strong population growth, which has been higher than the national average in recent years,” Mr Heather said.
“Already boasting one of the nation’s strongest performing hotel markets, Canberra is positioned for further improvement off the back of the daily flights between Singapore and Canberra and now Doha.”
CBRE Research shows that minimal supply of new hotels in Canberra has underpinned the sector’s performance, with the pipeline remaining limited over the next three years.
“The opportunity to secure a new 4-star serviced apartment hotel in an undersupplied market will attract strong buyer interest, with enquiries expected from local, interstate and international operators,” Mr Heather added.
CBRE’s Rob Cross said investor demand for Canberra hotels, particularly apartment hotels, had been strong in recent years – as evidenced by the sale of Aria Apartment Hotel for $35 million to Aligned FM and Clifton Suites (now Pacific Apartments) to Ascot Capital/Facilimate for $65 million.
“One of the attractions driving Canberra tourism and investment demand is the number of new, modern and lifestyle driven hotels developed over the years, including the Realm, Little National and Hotel Hotel, which we recently sold the lease on to international brand – Ovolo Hotels,” Mr Cross said.
“This recent activity is further testament to the strength of the Canberra market and provides confidence in its long term future.”
The hotel is being offered for sale via Expressions of Interest closing June 21.
About CBRE Group, Inc.
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.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.