Redcape snare hotly contested Western Sydney hotel
JLL Hotels & Hospitality Group is excited to formally announce the sale of O’Donoghues Hotel in Emu Plains (Penrith), New South Wales for $30.5m to Redcape Hotel Group following a hotly contested, strategic marketing campaign.
The campaign was facilitated by JLL National Director John Musca and Senior Vice President, Ben McDonald in conjunction with Mike Wheatley of Knight Frank on behalf of long-term private owners, FAL Group who have owned the hotel for over 23 years.
Sitting on a land parcel in excess of 8,000sqm directly opposite Emu Plains train station, which itself is undergoing significant expansion, and in one of metropolitan Sydney’s fastest growing Local Government Areas (Penrith), the sales campaign drew out the ‘who’s who’ of the local hotelier set, along with commercial property developers vying to secure the large format trading hotel and 5,500sqm of underutilised land offering a variety of future development opportunities.
JLL Hotels Senior Vice President, Ben McDonald, noted the ongoing strength of demand across hotel market segments along with comparable economic stability including the reduction in capital costs continuing to fuel transaction activity in the hotel sector.
Mr McDonald noted, “Opportunities to acquire hotels such as O’Donoghues, that not only offer strong cashflow businesses but are underpinned by sound investment characteristics, including a dominant trading footprint in fast growing geographical locations, are being highly sought after by hotel operators and investors seeking greater exposure to the asset class.”
McDonald went on to add; “We are currently seeing varying boardroom strategies and capital deployment options employed and executed by hotel groups on significant expansion trails in a post COVID-19 world. These strategies continue to put downward pressure on capitalisation rates which we see continuing in 2021.”
Facilitating in excess of $400m of hotel sales since the onset of COVID-19, JLL Hotels has led the way in national hotel transactions which have recently also included the sale of the Accor Invest Hotel portfolio to Iris Capital for $175m, the Duke of Gloucester Hotel in Randwick to Justin Hemmes’ Merivale Group for $32.2m, the Four In Hand Hotel in Paddington for $8.25m and the Gladstone Hotel in Dulwich Hill, also acquired by Redcape for $38m and due to complete in Q3 of FY21.
JLL Hotels & Hospitality Group, 20th January 2021
