Waterfront Freehold Hotel for Sale
At a time when waterfront hotel properties such as the famous Beach Hotel in Byron Bay remain highly sought after following a recent international sale campaign, leading agents Ray White Hotels Australia and Manenti Quinlan and Associates have been exclusively retained to bring to market the waterside Patonga Beach Hotel, a short boat trip across the Pittwater from Sydney’s Palm Beach peninsula.
Following sales last year of both the Crowne Plaza on Terrigal Beach for approx $60mn to the Laundy and Karedis family offices, and of Newport’s eponymous Newport Arms Hotel to Merivale’s Justin Hemmes for approx $50mn, Ray White Asia Pacific Director Andrew Jolliffe believes waterfront properties supported by cash flow generating businesses are increasingly hotly contested by domestic and international investors.
“True beach, or oceanfront properties such as the Northies at Cronulla which we sold last year, are always highly regarded by astute investors from a range of investment classes; and accordingly, our expectation is that the Patonga Beach Hotel will similarly attract strong interest from parties who recognise the unique nature of quality waterfront businesses” commented Jolliffe.
The Patonga Hotel, a large format open plan style hotel operation sits atop a commanding 1540sqm with breathtaking views across Patonga Beach and Pittwater. Manenti Quinlan’s Gerry Quinlan believes the diverse patron base gives the hotel an advantage over other opportunities which rely solely on local trade. “The hotel, situated centrally on Patonga Drive, enjoys solid custom from local residents, as well as enviable weekend and holiday trade from an ever increasing tourism market” he said.
“The Central Coast is enjoying strong tourism and population growth, and visiting watercraft activity from Palm Beach and other Pittwater suburbs has also seen a demonstrable increase” commented Quinlan.
“We’ve enjoyed good fortune in recent time selling very valuable waterfront hotel properties via an international EOI sale process, and this we think is due largely to a combination of the scarcity of A grade hotel assets available to the market; and separately, as a result of the database of active Asia Pac buyers we have cultivated over a number of years and who are consistently in contact with us to make available to them acquisition opportunities such as the Patonga Beach Hotel” advised Joel Fisher of Ray White Hotels Australia.
It is anticipated that the high quality commercial real estate holding, with consistent and reliable annual revenue as well as the inherent value of the waterfront land holding, will attract strong interest from a broad range of hotel and property participants alike. “Like Bannisters at Mollymook, or the award winning Halcyon House on Cabarita Beach in Northern NSW, the opportunity to secure and then enhance the food, beverage and accommodation offering at the Patonga Beach Hotel, so as to attract greater patronage from both the Central Coast and Sydney, is simply huge” argues Gerry Quinlan.
Andrew Jolliffe and Joel Fisher of leading national brokerage firm Ray White Hotels Australia and Gerry Quinlan of Manenti Quinlan & Associates will run a four week international Expression of Interest campaign concluding Thursday 8 September 2016, and expect the interest to be both active and broad reaching.
“Hotels like the Patonga Beach Hotel enjoy significant appeal given a history of consistent cash flow generation, unopposed waterfront location, and underlying property value” commented Jolliffe. “In a market place where cash at bank looks increasingly like an impotent investment strategy, and investors are desperately hunting yield, buying oceanfront property complemented by a business operation enjoying both longevity and upside, is an uncontroversially compelling mix” concluded Jolliffe.