$75 million deal marks hotel transaction turnaround

A $75 million deal has been signed by Syrian billionaire Ghassan Aboud for the purchase of Brisbane hotel, The Fantauzzo Brisbane. 

Mr Aboud’s Crystalbrook hotel business has purchased The Fantauzzo from Melbourne developer, Deague Group. 

The hotel has strong weekend occupancies and is located in one of Australia’s more successful entertainment precincts, Howard Smith Wharves. 

The off-market transaction was conducted by selling agent CBRE Hotels’ national director Wayne Bunz on behalf of Deague Group.

“This deal represents the first major Australian hotel sale in 2020 during COVID-19, signalling that investors anticipate a recovery in the hotel sector,” Mr Bunz said in a statement. 

The hotel is located beneath Brisbane’s Story and has 166 rooms and a rooftop pool. It also recently won Queensland’s top award for commercial architecture, showcasing up to 300 pieces of art painted by photorealist painter Vincent Fantauzzo. 

The acquisition of The Fantauzzo is Crystalbrook’s first purchase in Brisbane adding to assets in Sydney, Cairns, Newcastle, Port Douglas and Byron Bay. 

Queensland has the most sought-after hotel ­investment market in Australia and Bunz expects there are more transactions to come. 

“Brisbane owners are well positioned to capitalise on a hotel market recovery, given the city’s limited supply pipeline, with only the Queens Wharf and Hotel Indigo projects set to open in the near term,” Bunz said.

Deague Chief Executive Will Deague said they were “pleased to have sold this truly 5-star property to a group that will celebrate the architecture and ­vibrant precinct of Howard Smith Wharves”.

Upon handover in the first half of 2021, the hotel will trade under Crystalbrook Collection.

Its new name is yet to be announced, however the hotel will continue trading under the management of Art Series Hotels until the acquisition is complete.