This article is from the Australian Property Journal archive
PRIME Hotels is offering its Reef House Palm Cove MGallery by Sofitel and the Rydges South Park Adelaide, separately or in one line.
CBRE’s Wayne Bunz and Rob Cross are marketing the properties on behalf of the private company, which is associated with David Horbelt and Malcolm Bean.
It has owned Rydges South Park Adelaide for more than 20 years and The Reef House since 2011, which it has refurbished.
The Reef House comprises a 69-room boutique resort in a colonial-style building, with the site featuring tropical gardens with 300-year old Melalucea gums, three swimming pools, the Reef House Restaurant and the Reef House Day Spa.
It is currently operated under a management agreement with Accor but can be purchased with vacant possession.
“The Reef House has long been one of the standout properties in Palm Cove and is the last remaining ‘in one line’ freehold hotel asset on Williams Esplanade,” Cross said.
He said Far North Queensland was benefiting from a surge in visitor numbers, particularly from Chinese tourists who were only just discovering the Great Barrier Reef.
“This has resulted in double digit RevPAR growth throughout the region and, with limited new supply emerging, the future growth prospects for the Far North has never looked more positive.”
CBRE Hotels has sold North Queensland hotels Rydges Esplanade, RydgesTradewinds and the Novotel Cairns in the past three months.
The 99-room Rydges South Park Adelaide, features conference and meeting venues, including the Skyline Events Centre, a rooftop pool, spa and fitness centre and the rooftop Skyline Restaurant and Bar.
It is currently operated by Event Hospitality and Entertainment (formerly Rydges Hotels & Resorts) but can also be purchased with vacant possession.
Cross saidthat Rydges South Park trades well above its competitive set due to its highly visible location, its array of function/meeting facilities and the strong performance of the Skyline Restaurant and Events Centre.
It sits on a landholding in excess of 3,200sqm in an area of Adelaide that is growing in popularity due to uninterrupted views over the adjacent parklands through to the Adelaide Hills.
Bunz said this was likely to be a key attraction for buyers, who could perceive the hotel as a medium-term hold with a strong holding income that could ultimately lend itself to a more substantial redevelopment – be that for a hotel, residential or a mixture of both.
“The market is devoid of quality hotel offerings at present and the Rydges South Park represents a very popular price point for investors. Recent zoning changes also allow for significant development upside,” he said.
The expressions of interest campaign for The Reef House, MGallery By Sofitel and Rydges South Park Adelaide, closes November 10 at 1.00pm.
Australian Property Journal