Ensure you never miss an issue of the
real estate business bulletin
Record firsts for hotel auction

Record firsts for hotel auction

by Reporter 0 comments

In a new record for the Australian hotel sector, ALE Property Group has sold six landmark hotels in an auction that spanned four states.

The properties sold for a cumulative total of $37 million.

The auction created history as private investors in four separate rooms in Sydney, Melbourne, Brisbane and Adelaide competed to acquire the ALE hotels using audio visual technology.

CB Richard Ellis’ Joel Fisher said the auction attracted frenetic bidding, with the Sunnybank Hotel in Brisbane sold on a yield of just 4.41 per cent – a new record for an Australian freehold investment hotel. The blended yield across the portfolio was 5.7 per cent.

“The result highlights the key difference between these assets and other hotel assets in the marketplace, which have been selling at higher yields,” Mr Fisher said.

“The strength of the tenant and the length of the lease term provided a key point of difference, with all six hotels sold with 19 years remaining on leases to Australian Leisure & Hospitality Group with options to renew for a further four, 10-year terms.”

The two Brisbane ALE properties achieved the highest prices, with the Sunnybank sold for $11.1 million and the Albion Hotel sold for $6 million on a yield of 6.25 per cent.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Record firsts for hotel auction
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?