This article is from the Australian Property Journal archive
THE 4.5-star Mackay Grande Suites serviced apartment hotel in northern Queensland is being offered to the market for the second time this year after going into administration.
The hotel had been taken to the market with vacant possession by local developer Cougar Developments in January via Colliers International, with hopes of attracting more than $30 million.
The six-storey hotel opened in 2007 and is on a 2,148sqm site at 9 Gregory Street in central Mackay. It comprises 91 rooms as well as facilities including swimming pool, conference rooms and gym, Cactus Jack’s restaurant and the AM Bar & Bistro with 45 gaming machines.
All assets are to be sold in one line and are being marketed by CBRE’s Wayne Bunz and Paul Fraser, on behalf of voluntary administrators Samuel Freeman and Justin Walsh of Ernst & Young.
It had a 62% occupancy rate and total turnover of around $10 million over 2016.
Bunz said that with little to no prime A-grade hotels for sale in major cities, investors are turning to regional markets, with the Mackay Grande Suites offering an opportunity to acquire a strong cash flow business that achieves solid profit margins.
“The sale of this asset presents an exceptional counter-cyclical opportunity for astute purchasers to gain a foothold in a recovering market, vacant possession is available and, given the property’s multiple income streams, we believe there will be broad ranging interest from publicans, hotel owner-operators and/or major brands,”
He said upside opportunities exist for the incoming owner to strata title and sell down the various components or, alternatively, lease the hotel, restaurant and pub assets to a third party to obtain a secure income stream.
The resource-sensitive Mackay region is gearing itself up for an economic boost from the proposed $22 billion Adani Carmichael coal mine.
Fraser said that Mackay would benefit significantly through employment, corporate arrivals and economic growth once the coal mine becomes operational, with Adani forecasting it generate an 10,000 additional jobs in the region.
Australian Property Journal
