Third Cairns hotel sells in five weeks
A third major Cairns hotel has traded in five weeks.
The 10-level Acacia Court Hotel at 223-227 The Esplanade, on the corner of Kerwin Street, collected $22.8 million from Vision Hotels.
A renovation and reposition is planned.
The 130 room 154-key asset is rated between 3.5 to 4 star.
The deal comes a fortnight since we reported a Sydney investor bought the Bay Village Tropical Retreat at Cairns North.
Two weeks before that, the local arm of the construction and hospitality division of Japan based Taisei Kanko paid $31m for the Harbourside Hotel, before 2024 known as the Holiday Inn.
“Cairns is firmly on the radar of sophisticated hotel investors,” JLL’s Gareth Closter, who brokered the three sales, said.
“The fundamentals are strong, trading performance has improved materially, per key pricing remains attractive by national standards and the tourism outlook is compelling,” he added.
“We’re seeing that translate into real conviction from buyers,” according to the executive (continues below).
Cairns outpacing Gold Coast on room return: agent
Cairns has recorded a RevPAR (revenue per available room) growth rate of 60 per cent since 2019.
The average room now costs $191.
Gold Coast rooms by comparison rose 38pc over that period. They now average $199.
Mr Closter added sales volume has increased too – some $80m trading this calendar year against a 10 year average of $30.6m.
“With occupancy levels remaining stable, the uplift has flowed directly to hotel profitability drawing increasing attention from investors, particularly those based in southern states, seeking value relative to Sydney and other markets,” according to the executive.
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