Established hotel with strong property fundamentals in WA’s capital city hits the market
The Sebel West Perth Aire Apartments is part of a 22-storey building, completed in 2018, offering a total of 64 studio apartments, each equipped with kitchenettes and private balconies, catering to the growing demand for flexible accommodation options in the city's commercial precinct.
The asset's comprehensive amenity includes a 22-metre heated outdoor pool, cabana lounge, and fitness centre. These lifestyle features, coupled with outdoor dining and BBQ facilities, position the property to capture both corporate and leisure demand segments.
JLL’s Gus Moors & Andrew Langsford, have been exclusively retained to market the property by way of an Expressions of Interest campaign.
The asset's operational flexibility presents a compelling proposition for prospective buyers. Currently operated under a franchise agreement with Accor, Australia's leading hotel management company, the property benefits from the brand equity and distribution network of the well-established Sebel brand. This arrangement gives immediate operational stability and market recognition. However, investors have an opportunity to reassess the management structure, presenting options to either maintain the Accor affiliation, transition to an owner-operator model or engage an alternative management company. This flexibility will appeal to buyers with existing hospitality portfolios or those seeking to optimise operational efficiencies.
A key feature enhancing the asset's profile is the potential for residential conversion from 2028. This optionality aligns with the property's adaptable design and comes at a time when Perth's residential market is experiencing supply constraints. The prospect of a residential sell-down strategy provides an alternative exit pathway, potentially mitigating long-term market risks and offering value-add opportunities.
Strategically positioned at 659 Murray Street, the West Perth asset boasts proximity to Perth's prime commercial district, offering walkable access to major corporate hubs and key infrastructure projects. The property's location capitalises on the forthcoming ECU City Campus and maintains convenient access to government offices at Parliament House.
The hotel’s appeal is further enhanced by its proximity to premier entertainment venues, including the RAC Arena and Perth Convention & Exhibition Centre, potentially driving ancillary commercial activity. West Perth's tree-lined streetscapes provide an attractive setting for a diverse array of hospitality outlets while delivering direct connectivity to the expansive Kings Park.
Gus Moors, Managing Director of JLL’s Hotels & Hospitality Group, said “Finding hotels in such a well-performing market with this level of flexibility is a rare opportunity. This hotel, with its strong current performance and promising underlying real estate fundamentals, presents incoming investors with a variety of short- and mid-term investment solutions.”
“The Perth accommodation market continues to trade exceptionally well in the post-Covid era. When combining this history of strong room night demand, a benign supply pipeline and exceptional growth in room rates, the outlook for the market is exceedingly positive.”, Andrew Langsford, Senior Vice President at JLL Hotels added.
Mining continues to be the major contributor to WA’s growth and there are no signs of the resources sector slowing down with world economies spending billions to support their economies by accelerating infrastructure projects. More recently, WA has risen to the top spot as the country’s best-performing economy.
WA remains in a unique position to capitalise on future growth, both from higher economic output and increased investment into the commercial real estate market. The ongoing strength within the resources sector as well as a plethora of opportunities arising from the global shift towards clean energy is expected to lead to increased diversification within the labour force, and therefore the ability to attract national and international skilled migrants into WA.
The Expressions of Interest campaign closes on Thursday 28th November 2024 at 2pm.
JLL, 30th October 2024
