hotel sales 2016 - f. · pdf filecllis intnatinal hotel sales in australia 2016 1 hotel sales...

1Hotel sales in Australia 2016COLLIERS INTERNATIONAL

Hotel Sales 2016An analysis of hotel sales in Australiaby Colliers International

Research andAnalysis report

2 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL

After a record year in 2015, dominated by several 5 star hotel sales in Sydney and the Eureka hotel portfo-lio, 2016 continued to generate a steady volume of hotel sales throughout Australia. In the following pages Colliers International offer details on 50 sales with a total value of $2.7 billion, the second highest result on record. Key features of the market during 2016 were:

• New South Wales dominated sales volume with around 40% of total hotel sales by value. Major hotel sales in Sydney included the Park Regis City Centre ($46.0 million) and the Vibe Hotel Sydney ($97.0 million). Major suburban sales in NSW included the Mercure Parramatta ($40 million) and the Adina Apartment Hotel in Norwest ($30.6 million).

• The largest hotel transaction of the year was the $700 million Ribbon development site acquisition by Chinese Zhengtang Group (now Greaton) in Darling Harbour. The mixed-use development is mooted to include a 400 room W branded hotel.

• There was significant activity in the Queensland leisure destinations of Surfers Paradise and Cairns including the Surfers Paradise Marriott Resort & Spa ($70 million), Hotel Grand Chancellor Surfers Paradise ($80 million), Rydges Tradewinds Cairns ($34 million) and Rydges Esplanade Cairns ($40 million) all transacting in 2016. These sales coincided with strong growth in the trading fundamentals from Cairns and the Gold Coast, which were the two best performing markets in the country in 2016 in terms of year on year growth.

• When including the Ribbon development site purchase, Chinese mainland investors were the predominant buyer origin for 2016 with 37% of sales by value. This compares to just 6% of sales in 2012. Domestic buyers accounted for approximately 29% by value and Singapore buyers accounted for approximately 18% in 2016.

• Over the past 4 years we have seen an overall trend in compression of yields; from over 9% in 2013 to approximately 6% in 2016 when taking into account all hotel transactions over $5 million.

• 2017 is likely to be a year where hotel development deals feature prominently, as investors look for new ways to capitalise on the strength of the sector.

We hope you find this report of interest and, as always, we welcome your thoughts and feedback.

Gus MoorsHead of Hotels Australia

Origin of Hotel Purchasers by Value ( >$5 million)

Benchmark Yields of Major Hotel Transactions

Mill

ions

Passing Yield Ranges - 2016 Hotel Transactions

2016: a year in review

Source: Colliers International


NSW

Sale Date Jan 2016

Type Major Hotel

Rooms 191

Price/Room $507,853

Sale Date Feb 2016

Type Major Hotel

Rooms 106

Price/Room $288,679

Sale Date Feb 2016

Type Major Hotel

Rooms 196

Price/Room $295,918

Vibe Hotel Sydney Adina Apartment HotelCrowne Plaza Terrigal

$97,000,000 $30,600,000$58,000,000

NSW,Sydney,CBD

NSW,Terrigal

NSW,Sydney,Baulkham Hills

Rebranded to Mercure Charlestown

Sale Date Feb 2016

Type Motel

Rooms 53

Price/Room $118,868

Sale Date Feb 2016

Type Backpackers

Rooms 24

Price/Room $425,833

Madison Motor Inn Backpackers HQ, Potts Point

$6,300,000 $10,220,000

NSW,Sydney,Potts Point

NSW,Newcastle,Adamstown Heights

Backpackers

Sale Date Mar 2016

Type Major Hotel

Rooms 44

Price/Room $212,500

Best Western Plus Boutique Hotel, Port Macquarie

$9,350,000

NSW,Port Macquarie


NSW

Sale price also includes the conference centre and 9 - hole golf course

Sold with vacant possession

Sale Date Mar 2016

Type Resort

Rooms 68

Price/Room $ 167,647

Sale Date Mar 2016

Type Major Hotel

Rooms 45


Parklands Resort MudgeeMantra Pavillion Hotel, Wagga Wagga

$11,400,000$11,500,000

NSW,Wagga Wagga

NSW,Mudgee

Sale Date Mar 2016

Type Mixed use

Rooms 54

Price/Room $149,074

Sale Date Jun 2016

Type Hotel & Restaurant

Rooms 17

Price/Room $282,353

Sale Date Jun 2016

TypeBoutique Hotel & Restaurant

Rooms 25

Price/Room $240,000

Retreat at Wisemans

Peppers Convent Hotel and Circa 1876 Restaurant

Bells at Killcare

$8,050,000

$4,800,000 $6,000,000

NSW,Wisemans Ferry

NSW,Pokolbin

NSW,Central Coast

Sale Date Jul 2016

Type Motel

Rooms 22

Price/Room $200,000

Shellharbour Village Motel

$4,400,000

NSW,Shellharbour


NSW

Sale Date Aug 2016

Type Major Hotel

Rooms 122

Price/Room $377,049

Sale Date Jul 2016

TypeSite for Hotel Development

Rooms N/A

Price/Room N/A

Sale Date Jul 2016

Type Major Hotel

Rooms 165

Price/Room $240,000

Park Regis City Centre, Sydney

Proposed W Sydney Hotel - The Ribbon development

Mercure Parramatta

$46,000,000

$700,000,000$39,600,000

NSW,Sydney,Parramatta

NSW,Sydney,CBD

NSW,Sydney,CBD

Sale Date Aug 2016

Type Hotel

Rooms 16

Price/Room $362,500

L’otel Darlinghurst

$5,800,000

NSW,Sydney,Darlinghurst

Sale Date Aug 2016

Type Motel & Restaurant

Rooms 50

Price/Room $135,000

Warners at the Bay

$6,750,000

N/A

NSW,Lake Macquarie

Sale Date Aug 2016

Type Backpackers

Rooms 54

Price/Room $208,333

Lamrock Lodge

$11,250,000

Backpackers

NSW,Sydney,Bondi


NSW

VIC

Includes significant residential development land, conference and events centre in addition to accommodation

Rebranded to Ibis Melbourne Swanston Street

Sale Date Nov 2016

Type Major Hotel

Rooms 76

Price/Room N/A

Sale Date Nov 2016

Type Backpackers

Rooms 52

Price/Room $346,154

Sale Date Feb 2016

TypeHotel and conference facility

Rooms 124

Price/Room $967,742

Sale Date Jul 2016

Type Resort & Vineyard

Rooms 70

Price/Room $428,571

Sebel Kiama Bondi Backpackers

Aitken Hill conference and events venue

Balgownie Estate Vineyard Resort & Spa

$13,000,000 $18,000,000

$120,000,000 $30,000,000

VIC,Yuroke

VIC,Yarra Valley

Sale Date Feb 2016

Type Major Hotel

Rooms 235

Price/Room $225,532

Tune Hotel Melbourne

$53,000,000

VIC,Melbourne,Carlton

Backpackers

Includes 76 units in total including 52 freehold strata units, food and beverage & 24 additional management rights in the letting pool

NSW,Kiama

NSW,Sydney,Bondi


VIC

Proposed development - price is based on a turn-key acquisition

Sale Date Jul 2016

Type Serviced Apartments

Rooms 221

Price/Room $321,267

Sale Date Aug 2016

Type Major Hotel

Rooms 40

Price/Room $183,950

Sale Date Sep 2016

Type Major Hotel

Rooms 380

Price/Room $623,684

Quest New Quay Docklands

Peppers Mineral Springs Hotel

Novotel Melbourne on Collins

$71,000,000 $7,358,000 $237,000,000

VIC,Melbourne Docklands

VIC,Hepburn Springs

VIC,Melbourne

Hotel operated under triple net lease.

Sale Date Oct 2016

Type Major Hotel

Rooms 291

Price/Room $367,698

Sale Date Nov 2016

Type Major Hotel

Rooms 200

Price/Room $368,333

Travelodge Docklands Novotel Melbourne Glen Waverley

$107,000,000 $73,666,667

VIC,Melbourne

VIC,Melbourne,Glen Waverley


QLD

Redevelopment site

Sold with vacant possession. Purchaser plans to upgrade hotel to five - star standard

Sale Date Mar 2016

Type Resort

Rooms 151

Price/Room $172,185

Greenmount Resort Coolangatta

$26,000,000

QLD,Coolangatta

QLD,Brisbane,Chermside

Sale Date Mar 2016

Type Major Hotel

Rooms 246

Price/Room $138,211

Rydges Tradewinds Cairns

$34,000,000

Sale Date May 2016


Rooms 54

Price/Room $238,889

Quest Chermside

$12,900,000

Includes the leased Helm Bar

Sale Date Jan 2016

Type Major Hotel

Rooms 65

Price/Room $312,308

TRYP Fortitude Valley Hotel

$20,300,000

QLD,Brisbane,Fortitude Valley

QLD,Gold Coast,Surfers Paradise

Sale Date Jan 2016

Type Major Hotel

Rooms 199

Price/Room $226,131

Vibe Hotel Surfers Paradise

$45,000,000

Sale Date Feb 2016

Type Major Hotel

Rooms 216

Price/Room $324,074

Surfers Paradise Marriott Resort & Spa

$70,000,000


QLD,Cairns


QLD

Sold with vacant possession, included separately titled penthouse apartments. Sale price apportioned at $76.7m for the hotel and $3.3m for the penthouse apartments.

Redevelopment site Sold with vacant possession

QLD,Ipswich

Sale Date May 2016


Rooms 64


$10,500,000

Quest Ipswich

Sale Date Jun 2016

TypeResort (redevelopment site)

Rooms 120

Price/Room $541,667

International Beach Resort

$65,000,000

Sale Date Jun 2016

Type Major Hotel

Rooms 200

Price/Room $70,000

Holiday Inn Townsville

$14,000,000

Sale Date Jun 2016

Type Major Hotel

Rooms 118

Price/Room $79,661

Townsville Central Hotel

$9,400,000

Sale Date Jun 2016

Type Major Hotel

Rooms 404

Price/Room $189,851

Hotel Grand Chancellor Surfers Paradise

$76,700,000

QLD,Rockhampton

Sale Date Jun 2016

Type Hotel

Rooms 49

Price/Room $122,449

$6,000,000

Quality Regent Hotel Rockhampton


QLD,Townsville

QLD,Townsville



QLD

Resort now closed

Sale Date Jun 2016

Type Major Hotel

Rooms 314

Price/Room $153,121

Novotel Cairns Oasis Resort

$48,080,000

Sale Date Sep 2016

Type Major Hotel

Rooms 242

Price/Room $165,289

Rydges Esplanade Cairns

$40,000,000

QLD,Airlie Beach

QLD,South Molle Island

Sale Date Jul 2016

Type Major Hotel

Rooms 161

Price/Room $55,901

Sale Date Aug 2016

Type Resort

Rooms 180


Club Crocodile Resort South Molle Island Resort

$9,000,000 $25,000,000

Sale Date Nov 2016

Type Serviced Apartment

Rooms 51

Price/Room $309,804

Jephson Hotel

$15,800,000

QLD,Toowong

N/A

QLD,Cairns

QLD,Cairns


Rebranded to Pacific Suites Canberra

Sale Date Feb 2016


Rooms 66

Price/Room $272,727

Quest Apartments Mawson Lakes

$18,000,000

SA,Mawson Lakes

Sale Date Apr 2016

Type Major Hotel

Rooms 153

Price/Room $424,837

Clifton Suites on Northbourne Canberra

$65,000,000

Sale Date Apr 2016


Rooms 98

Price/Room $428,571

Sale Date Mar 2016

Type Major Hotel

Rooms 78

Price/Room $182,051

Quest Adelaide Terrace Best Western Tall Trees, Canberra

$42,000,000 $14,200,000

SA W

A AC

T

ACT,Canberra

ACT,Canberra

WA,East Perth


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Colliers International does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one-way or the other in relation to the accuracy of such information, figures and projections. Colliers International will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.

hotel sales 2016 - f. · pdf filecllis intnatinal hotel sales in australia 2016 1 hotel sales...

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