Queensland's largest hotel sold

Following a recent National EOI campaign, Queensland's largest hotel, The Acacia Ridge in Brisbane's South West, has been sold to a Sydney based fund amidst a national backdrop of record breaking hotel transactions.

Originally bought in 2014 for $16m by Sydney hoteliers Peter Calligeros and partner Steve Farley, the hotel was marketed by leading agent and Ray White's Asia Pacific Director Andrew Jolliffe, together with CBRE Hotels agent Glenn Price.

Jolliffe confirmed the very large format hotel sold for approx. $26m, believing the strong sale price was directly indexed to the Acacia Ridge Hotel’s huge 18,000sqm block, situated prominently on the very active Beaudesert Rd in the blue collar industrial precinct of Acacia Ridge. With Jolliffe noting that this compelling formula appealed to a cross section of hoteliers and developers alike.

“My partner and I are particularly happy with the result, and the manner in which the sale process was run. It was a significant investment for us, and we wish the new owners well” commented well known Sydney hotelier Peter Calligeros, adding that he was pleasantly surprised with the geographical reach of the interest generated.

“The Acacia Ridge Hotel is regarded as one of the most valuable, and therefore sought after hotel properties in Queensland; having recently undergone a strategic renovation which consequently catapulted the hotel’s State gaming ranking; consistently in the State's Top 10 hotels when ranked by profit” advised Jolliffe.

However Jolliffe’s view is that gaming alone is not the only attraction for astute investors who aggressively pursued the opportunity. “The 45 Electronic Gaming Machines operated at the hotel are well supported by a balanced business model, which includes a large format drive-through bottle shop, multiple bars and conference facilities; as well as a 34 room accommodation centre; with the whole complex complemented by a 230 space car park” said Jolliffe.

The Acacia Ridge Hotel has benefited greatly from the expansion and intensification of surrounding residential suburbs including Sunny Bank, Sunny Bank Hills and the $600M Cornerstone Living Master Plan development at Cooper Plains. With further growth in the South West Brisbane corridor reflected via residential, light industrial and commercial precinct augmentation.

"The response the strategic campaign generated enjoyed clear connection with astute hoteliers, as well as property developers who saw mixed and alternative use opportunities available in respect of the underutilised aspects of the land holding" advised Jolliffe.

Co-agent for the deal, Glenn Price from CBRE Hotels stated that “the critical land size upon which the Acacia Ridge Hotel is located, a proportion of which is supplementary to the current hotel operation needs, provided the purchaser with ancillary mixed use development opportunities.”

It is understood that interest in the sale of the hotel was widespread with Jolliffe confirming the reach transcended State boundaries; with the successful buyer ultimately coming from Sydney.

"Interest from Queensland, Victorian and NSW investors was particularly strong, as well as from some of our key clients we have relationships with out of our Northern Territory office" commented Jolliffe. The national hotel market has been in overdrive over the past 6 months, with Jolliffe attributed to several of the largest sales, including the sale as reported in the AFR of Bruce Solomon's Albion Hotel in Parramatta for $60m.

"The confluence of the historically low interest rate cycle, ready availability of senior debt, the low Australian dollar driving inbound revenues and the strength of weekly cash receipts at the point of sale, when collectively distilled, render the opportunity to acquire A grade hospitality property wholly compelling" concluded Jolliffe.

Andrew Jolliffe is also selling the Tennyson Hotel and Figtree Tavern via auction in the Ray White Group’s Sydney offices this Thursday 1 December, with expectations of strong interest expected in a bold return to pub auction sales.

In October 2016, Jolliffe was announced as the International Number One Agent in the 1000 office Ray White Group for the second consecutive year.