Bay Village Tropical Resort
A Sydney investor has snapped up a Cairns hotel in the second major hotel acquisition in the city in a month.
JLL Hotels & Hospitality Group announced that the off-market transaction of Bay Village Tropical Resort in Cairns North followed the sale of Cairns Harbourside Hotel for more than $30 million.
Bay Village Tropical Resort
Both transactions were marketed by JLL senior vice president of hotels & hospitality group, Gareth Closter.
“The sale of Bay Village Tropical Retreat is another example of the strong appetite we are seeing for quality regional accommodation assets across Queensland,” Mr Closter said.
“We have transacted $44 million in the Cairns market in May alone, with further announcements to be made in the coming days.”
Bay Village Tropical Resort features 72 rooms and suites, extensive resort-style amenities including multiple swimming pools and food and beverage facilities, and a large underlying landholding in one of Cairns’ most tightly-held accommodation precincts.
The hotel was sold with vacant possession of brand and management, providing an opportunity for repositioning, refurbishment and potentially rebranding.
R. I. P-off: The extreme cost of a final resting place
Comedian’s huge “House of Sh*t’ update
‘Go for it’: Goodrem $10m rumour confirmed
Cairns Harbourside Hotel also recently sold
In a media release, JLL said that the Cairns hotel market has seen substantial growth in both average daily rate and revenue per available room in recent years, increasing 43 per cent and 47 per cent per cent compared to 2019 levels.
“The market is expected to see further upside as traditional international source markets such as China and Japan continue to recover,” the media release said.
“The sale comes amid continued momentum across the Queensland hotel and resort market, with regional centres such as Cairns and Townsville experiencing elevated levels of buyer enquiry and transactional activity.
“Investors are increasingly targeting regional accommodation assets due to strong operating fundamentals, resilient tourism demand, and the long-term growth outlook supported by population growth and major infrastructure spending across the state.”
Further, JLL noted that recent announcement of the $1 billion-plus expansion of the Cairns Hospital was expected to support accommodation demand “almost immediately”.
“Well-positioned hotels and resorts with proven trading performance continue to generate significant interest, particularly in tourism markets such as Cairns where long-term fundamentals remain exceptionally positive,” Mr Closter said.