Pacific Hotel hits the block as Brisbane takes off

The Pacific Hotel in Brisbane has hit the market with a price tag of $52m.

Fresh from the sale of Brisbane’s Inchcolm by Ovolo Hotel and fhe Sofitel, the Queensland capital’s hotel market is now offering up the Pacific Hotel for a hefty asking price of around $52m.

Marketing agents CBRE say the buyer will benefit from the Pacific Hotel’s location adjacent to the Brisbane Live Entertainment Arena, which is hosting the 2032 Olympic and Paralympic swimming and water polo finals.

Singapore’s Invictus Developments acquired the Inchcolm by Ovolo for $25m, while the Sofitel Brisbane was bought for $177.7m by CDL.

CBRE Hotels’ Wayne Bunz and Hayley Manvell are marketing the 179-room, four-star Pacific Hotel via an expressions of interest campaign. The vendor is a syndicate of investors represented by the hotel manager, the Pacific Hotel Group’s managing director Stephen Lauder.

The 12-storey building sits on a 2,900sq m freehold land parcel. Guest rooms range from 27 to 58sq m in size.

The 345 Wickham Terrace, Spring Hill hotel once owned by Syd Fischer underwent an $8m refurbishment in 2019-20.

The Pacific Hotel in Brisbane has hit the market with a price tag of $52m.

The property features the Osteria Roma Restaurant, multiple conference and events spaces, outdoor swimming pool, gym, guest laundry and 78 car spaces.

The sale is expected to generate significant local and offshore buyer interest, underpinned by the growing infrastructure and tourism amenities being developed in the city and the strength in Brisbane’s tourism market, according to the marketing agents.

Mr Bunz said hotels continued to be an asset class of choice given the sector’s positive market fundamentals and attractive risk-adjusted returns.

“We are seeing a broad range of investors seeking growth via hotel assets, and with international tourism still recovering, particularly from China, we forecast this growth to continue,” he said.

“We are also seeing a resurgence of investment activity in the Australian hotel sector, as both local and overseas buyers see long-term potential for higher returns than those offered by other countries or property ­sectors.

“Brisbane in particular is one of Australia’s most sought-after hotel investment markets. With the Olympics occurring in 2032, the city is viewed as a tier 1 destination for astute hotel investors, with revenue per available room (RevPAR) having risen by 49 per cent since 2019.”

Currently, owner-operated under the Pacific Hotel brand, the asset is being offered for sale with vacant possession, with future operational flexibility expected to be one of the biggest factors driving broad investor ­interest.

“This is an exciting opportunity for an international operator to get a foothold into the hottest hotel market in Australia and to have their brand on the world stage leading up to the 2032 Olympic Games,” Mr Bunz said.

Brisbane’s strong demand trajectory coupled with a limited supply pipeline due to elevated construction costs is underpinning the market’s performance.

With future demand growth over the five years to the 2027 financial year forecast at 5.47 per cent per annum, CBRE’s Ms Manvell said The Pacific Hotel offering presented an exciting opportunity.

“The hotel is positioned at the doorstep to a number of Brisbane’s forthcoming tourism, entertainment and transport developments, including being adjacent to the Brisbane Live Entertainment Arena, a 17,000 seat CBD venue hosting the 2032 Olympic and Paralympic swimming and water polo finals,” Ms Manvell said.

“The asset also has long-term development potential, being under the Spring Hill Neighbourhood Plan, which allows a maximum height of 20 storeys for sites above 1,800sq m.

“This provides the ability for a new owner to add up to an additional eight storeys to increase the room inventory or introduce a mixed-use element to the asset.”

The Pacific Hotel Brisbane is being sold via an expression of interest campaign, which is due to be launched later this month.