MA Financial has snapped up the six year old Four Points by Sheraton Melbourne, in Docklands, to seed the Accommodation Hotel Fund.
The 15-storey, 273 suite guesthouse at 443 Docklands Drive is costing $96 million from Singapore listed Hiap Hoe.
TFE Hotels will now manage it; the venue is set to be rebranded Vibe Docklands.
The open-ended trust has more than $1 billion to spend on hospitality product.
High end accommodation, similar to the 4.5-star Four Points by Sheraton, “to provide investors with both a robust income stream and a compelling return profile” is on the manager’s radar.
“The financial performance of Australia’s accommodation hotel sector has rebounded in 2023,” MA Financial managing director, Alternative Real Estate Investments, said.
“Hotels in Australia have seen a dramatic post-COVID recovery with hotel revenues in line with or exceeding pre-COVID levels despite international short term visitor arrivals having only recovered to approximately 75 per cent of pre-COVID volumes,” he added.
“This combination of resilience, current asset pricing and the opportunity for further growth makes for a compelling investment proposition,” according to the executive (story continues below).
Chasing accommodation hotels
News of the hotel fund comes after MA Financial managed Redcape divested a portfolio of New South Wales pubs.
“Accommodation hotels fits perfectly within our specialisation as an alternative real estate asset manager, where we add value through identifying unique situations and actively managing assets for the benefit of investors,” MA Financial joint chief executive officer, Julian Biggins, said.
Last April, for another fund, the managers paid $225m for 10 marinas, the majority in New South Wales.
Vibe Docklands, also with a licensed bar, restaurant, gym and pool, was marketed by Savills’ Mark Durran and Nick Sasic.
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