hotel sales 2016 - f. · pdf filecllis intnatinal hotel sales in australia 2016 1 hotel sales...
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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
3Hotel sales in Australia 2016COLLIERS 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
4 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL
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
Price/Room $ 255,556
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
5Hotel sales in Australia 2016COLLIERS INTERNATIONAL
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
6 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL
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
7Hotel sales in Australia 2016COLLIERS INTERNATIONAL
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
8 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL
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
Type Serviced Apartments
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,Gold Coast,Surfers Paradise
QLD,Cairns
9Hotel sales in Australia 2016COLLIERS INTERNATIONAL
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
Type Serviced Apartments
Rooms 64
Price/Room $ 164,063
$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,Gold Coast,Surfers Paradise
QLD,Townsville
QLD,Townsville
QLD,Gold Coast,Surfers Paradise
10 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL
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
Price/Room $ 138,889
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
11Hotel sales in Australia 2016COLLIERS INTERNATIONAL
Rebranded to Pacific Suites Canberra
Sale Date Feb 2016
Type Serviced Apartment
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
Type Serviced Apartment
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
12 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL
UNRIVALLED EXPERIENCEWith a dedicated team of hotel sales professionals, valuers and advisors, our strong regional representation enables us to provide local expertise in a global context. We represent one of the largest and most experienced teams of hotel specialists across Australia and New Zealand.
• Agency sales across all hospitality types• Purchaser due diligence and negotiation• Sale of hotel management companies• Valuation of hospitality property and business utilising
Australia’s largest dedicated hotel valuation team• Operator search, selection and negotiation for management
agreements, leases and franchises• Operational reviews• Debt and equity solutions for property owners and hotel
management companies• Asset management services• Research and consultancy services• Development advisory and feasibility• Wholesale funds investment
Let us accelerate your success. Speak to one of our Hotel experts today. e: [email protected]
• Full service hotels and motels• Limited service hotels• Serviced apartments• Pubs• Tourist parks• Golf courses• Marina• Management companies• Student accommodation
We offer a full range of hotel property solutions...
Across every hospitality property and business type...
SYDNEY
BRISBANE
DARWIN
MELBOURNE
Everywhere• 24 offices across Australia• 16 offices in New Zealand
Tony West Director+61 409 422 458
Michael Docker Executive +61 431 421 000
Guy Wells Associate Director+61 405 612 416
Michael Thomson National Director +61 412 053 598
Chris Milou Director +61 413 615 398
Raymond Tran Manager+61 416 180 494
Gus Moors Head of Hotels +61 404 005 066
Denise Kirk Analyst | Hotels+61 414 708 112
Karen Wales Director +61 405 227 152
NEWCASTLE
Neil Scanlan National Director+61 437 700 007
Baden Mulcahy National Director+61 439 034 033
Leo Carne Executive +61 439 736 861
Allan Kentwell Senior Executive+61 411 536 626
13Hotel sales in Australia 2016COLLIERS INTERNATIONAL
UNRIVALLED EXPERIENCEWith a dedicated team of hotel sales professionals, valuers and advisors, our strong regional representation enables us to provide local expertise in a global context. We represent one of the largest and most experienced teams of hotel specialists across Australia and New Zealand.
• Agency sales across all hospitality types• Purchaser due diligence and negotiation• Sale of hotel management companies• Valuation of hospitality property and business utilising
Australia’s largest dedicated hotel valuation team• Operator search, selection and negotiation for management
agreements, leases and franchises• Operational reviews• Debt and equity solutions for property owners and hotel
management companies• Asset management services• Research and consultancy services• Development advisory and feasibility• Wholesale funds investment
Let us accelerate your success. Speak to one of our Hotel experts today. e: [email protected]
• Full service hotels and motels• Limited service hotels• Serviced apartments• Pubs• Tourist parks• Golf courses• Marina• Management companies• Student accommodation
We offer a full range of hotel property solutions...
Across every hospitality property and business type...
SYDNEY
BRISBANE
DARWIN
MELBOURNE
Everywhere• 24 offices across Australia• 16 offices in New Zealand
Tony West Director+61 409 422 458
Michael Docker Executive +61 431 421 000
Guy Wells Associate Director+61 405 612 416
Michael Thomson National Director +61 412 053 598
Chris Milou Director +61 413 615 398
Raymond Tran Manager+61 416 180 494
Gus Moors Head of Hotels +61 404 005 066
Denise Kirk Analyst | Hotels+61 414 708 112
Karen Wales Director +61 405 227 152
NEWCASTLE
Neil Scanlan National Director+61 437 700 007
Baden Mulcahy National Director+61 439 034 033
Leo Carne Executive +61 439 736 861
Allan Kentwell Senior Executive+61 411 536 626
14 Hotel sales in Australia 2016 COLLIERS INTERNATIONAL
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.