Interstate hotel group secures Acacia Ridge Hotel
The landmark Acacia Ridge Hotel has been sold by long term owners Andrew & Regina Stratis, as interstate investment in the resurging Brisbane pub sector continues to rise.
The high profile hotel occupies a strategic 18,450sqm landholding in Brisbane’s south-east growth corridor, offering a gross floor area of over 9,000sqm - making it arguably Queensland’s, and possibly Australia’s, largest hotel.
CBRE Hotels Manager Glenn Price, who steered the Expressions of Interest campaign, said the hotel attracted significant buyer interest and was eagerly contested by hoteliers and developers from across Queensland and the southern states.
“We were more than happy with the level of enquiry through the sale process, with buyers from across most states in Australia enquiring on the asset and playing a part in the EOI process,” Mr Price said, adding that it further highlighted the current strength of the Brisbane market.
“There is an ever increasing desire from interstate publicans to enter into the Queensland hotel sector at what they perceive to be an opportune time,” Mr Price explained.
“High profile assets and those with development potential in other states are often tightly held and command bullish prices if they do come up for sale. Yields here in Queensland, while strengthening, are still generally lower than those of the Sydney and Melbourne markets.”
The sale marked the purchaser’s - a Sydney based hotel group - first foray into the Queensland market.
A spokesperson for the group said: “The hotel had a wide-ranging appeal to us given its location, size and upside to the current business platform.”
When asked of the group’s future plans for the hotel, the spokesman commented:
“Ultimately to build the business; initially we will deliver an immediate upgrade to the dated gaming fleet and put our own spin on the food side of the operation. The sheer size of the hotel gives us plenty of room to play with and there are multiple development opportunities for the entire site in the future.”
Mr Price said the hotel’s location was also a key selling factor.
“The Acacia Ridge Hotel is situated within 10km’s of seven of the top 10 gaming hotels in Queensland, while it currently sits at around 120 in the state. In this regard, the hotel would be considered to have exponential upside in this area,” Mr Price explained.
The Acacia Ridge Hotel has 40 Gaming Machine Authorities and features multiple bars, gaming room, functions rooms and a bistro, as well as a large, drive-through bottle shop, two detached bottle shops, 27 motel rooms and 233 car parking spaces.
The site also benefits from more than 120metres of frontage to Beaudesert Road.
CBRE Hotels is also in the process of completing the sales and marketing campaign of the iconic Grand View Hotel at Cleveland, which is situated on the shores of Moreton Bay overlooking North Stradbroke Island.
The Grand View is known as Queensland’s oldest hotel dating back to 1851, which has operated continuously since its inception. It is expected to sell for around $15 million dollars.
Source: CBRE - 7th July 2014
