Legend Land, an associate of Worldwide Hotels, has paid about $100 million for Brisbane’s ibis Styles hotel (pictured top and left).
The 367-suite inn at 40 Elizabeth Street, about 250 metres from the Queen Street Mall, in the city centre, opened just over two years ago.
The Singapore-based hotel owner owns more than 40 assets in the Asia-Pacific region. Earlier this year it purchased Perth’s Holiday Inn.
CBRE Hotels Wayne Bunz sold the ibis Styles hotel off-market for the developer, Action Hotels.
“The sale of ibis Styles Hotel Brisbane underpins the strategy of Action Hotels to successfully develop hotels and exit at appropriate times to reinvest into our global hotel pipeline,” the vendor’s Australian director Andrew Nehme said.
Carolyn Choo, managing director of Worldwide Hotels added “it is the intention of the group to expand worldwide, in line with the next phase of its long term plans”.
“Worldwide Hotels strives to be a significant player in the global hospitality scene”.
Mr Bunz said the low Australian dollar coupled with strong tourism growth helped fuel offshore buyer demand for hotel investments nationwide – with Brisbane viewed as a counter-cyclical investment opportunity.
“The smart money is actively seeking opportunities in Brisbane, where hotels are being acquired below replacement value,” Mr Bunz said. “Investors willing to take a leap of faith in the counter-cyclical market of Brisbane are truly ahead of the curve.”
More than $200 million in offshore capital has been invested in Brisbane hotel acquisitions over the past 12 months, CBRE said, with interest coming from German, Hong Kong and Singaporean investors.
Major sales include the Emporium Hotel Fortitude Valley to Ovolo and the Ibis and Mercure Brisbane hotels to Commerz Real.
Mr Munz said that Brisbane is said to benefit from the development of more than $30 million in major projects including the Queen Wharf Casino and Entertainment Precinct, a second airport runway, international mega cruise ship terminal, Brisbane Live Entertainment Centre, road and rail projects and major new commercial precincts.