Investors trade another Mercure
Sydney-based investors have traded another Mercure motel – this time in Queensland.
The 74 room guesthouse on 4757 square metres at 86 Victoria Parade, overlooking the Fitzroy River, in Rockhampton, curried favour with Felix Capital.
Fifty Group was the seller; it paid $5.8 million in 2018.
Nearly $4m was subsequently spent on renovating the asset, also with a 110-seat restaurant, bar, pool, gym, car park, 443 sqm conference centre, with six spaces, and two bedroom manager’s residence.
The exterior was also revamped.
Mercure is an Accor brand.
La Vie Hotels and Resorts is this hotel’s operator.
Development upside
The Mercure Rockhampton rooms are rated 4-star, spreading between 24-47 sqm, each with a balcony; occupancy was 84 per cent in the year before it was listed, recording $5.5m in revenue.
The car park is open-air, across 1447 sqm, and marketed for its development upside, either as an extension to hospitality elements, or for more rooms, or some other type of commercial product.
The deal comes three months since we reported Mercure Townsville sold.
Not long earlier, an asset leased to the brand in Victoria’s Warragul traded, while in 2023, a nearby asset, at Pakenham, sold – for $15.8m.
“We are pleased to see the Mercure Rockhampton transition to a new owner with the capital and vision to take the asset forward,” Fifty Group managing director, Tom Wang, said.
“The property has been significantly upgraded in recent years and has delivered robust performance underpinned by record accommodation demand and constrained market supply,” according to the executive.
“This transaction aligns with our broader strategic direction while hotel assets remain a core focus of the group,” he added.
Felix Capital’s Michael Maroun said the firm was actively pursuing further hotel investment opportunities as part of the continued diversification of its portfolio.
“This acquisition aligns with our strategy of targeting well-located assets in resilient regional markets,” he added.
“Rockhampton is a tightly held market with established corporate and leisure demand, and we see scope for long term value-add via a potential combination of operational initiatives and the possibility of future development opportunities,” according to the executive.
The group is also behind a $150m revamp of Maroochydore’s Crowne Plaza, with 180 rooms, with completion due in 2028.
CBRE’s Hayley Manvell, Wayne Bunz and Taylor Morris brokered the Rockhampton deal.
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