Griffith’s Quest Apartment Hotel sells for $15.25m
| 6 April 2018
Strengthening investor interest in Australia’s regional hotel market has underpinned the sale of Quest Apartment Hotel in Griffith for $15.25 million - representing a strong yield of 7.5%.
CBRE Hotels’ Scott Callow and Andrew Jackson were appointed to exclusively market the freehold building on behalf of Railway Street Holdings Pty Ltd - a large regional developer, which has completed previous Quest projects.
Mr Callow said the property generated strong buyer interest from both Australia and Asian buyers. The eventual purchaser was an established domestic hotel investor.
“This property, which is only 12 months old, attracted strong buyer interest given its operation under Quest, Australia’s largest serviced apartment operator. Quest’s confidence in this regional markets sparked huge investor interest throughout the campaign,” Mr Jackson said.
Located in the centre of Griffith – a prominent regional business destination - the 4.5 star hotel is located on a 3,393sqm site.
Mr Jackson said investors were increasingly becoming attracted to regional locations such a Griffith, which benefis from diverse demand drivers including business, industrial and tourism.
“With limited opportunities to enter Australia’s hotel market in major capital cities, investors are shifting their focus to regional assets – as highlighted by this transaction,” Mr Jackson said.
“Pricing and scarcity of assets in tightly held CBD markets is forcing investors to look further afield into regional locations in order to secure hotels at attractive yields.”
Mr Jackson added: “We received several enquiries from the broader investment community, including those who haven’t previously invested in the hotel sector but are now looking at diversifying their interests in other commercial asset classes.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.