Redhill secures Dandenong Ranges for a discount
Redhill Hospitality Group has picked up another regional hospitality asset, this time for $6.15 million.
The price for the Panorama Retreat and Resort at Kalorama, in the Dandenong Ranges, values each room at $100,000, well below the non-metropolitan Melbourne average of $247,000, a spokesperson for the buyer said.
Also with conference facilities, a restaurant, business centre, lounge bar, pool, basketball courts and tennis courts, the result, they added, is at least 56 per cent below replacement cost and 39pc lower than the last pre-acquisition.
A revamp is planned – reactivating segments for the event segment.
“This presents a significant opportunity to capture additional midweek and off-peak demand, driving both occupancy and profitability,” they added.
Revamp planned
On five hectares at 180 Olinda Creek Road, the Panorama Retreat and Resort is booked for weddings, corporate retreats and weekend getaways.
The property includes a standalone dwelling, Shiloah Cottage, which sleeps four.
That said, the occupancy averaged 31pc last financial year, below 53pc for nearby competitors, a spokesperson said.
“With occupancy and margins currently lagging local peers and several underutilised resources on site, we see this property as a textbook turnaround opportunity,” they added.
The deal comes three months since we reported Redhill, in a partnership with Carpe Diem Group, sold Mildura’s Boulevard Motor Inn.
More recently Redhill divested Queanbeyan’s Crest Motor Inn, in New South Wales, near the ACT border, held eight years.
Its portfolio also includes a former Best Western at Tenterfield, acquired as a freehold going concern in 2022.
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