Prime Hotels in line for double deal
Prime Hotels has put a pair of high-profile hotels in Queensland and Adelaide on the market in one of the biggest hospitality industry moves this year.
The Reef House Palm Cove MGallery by Sofitel and the Rydges South Park Adelaide are being sold separately or in one line, as the private hotel group looks to flip its accomodation assets.
Prime Hotels acquired The Reef House in 2011 and has extensively refurbished it before offering it for sale, while it has owned Rydges South Park for 20 years.
Rydges South Park was recently a part of a rezoning that puts it firmly in line for redevelopment, and significantly increases its value for buyers and developers, as well as inflating its potential sale price.
It features 99 rooms, dedicated conference and meeting facilities, a rooftop pool, spa, fitness centre and the rooftop Skyline Restaurant and Bar.
The Reef House is a boutique, colonial style 69-room resort with three swimming pools, a restaurant and a day spa, and lies directly opposite Palm Cove’s main swimming beach.
The two properties are being marketed by CBRE Hotels national directors Wayne Bunz and Rob Cross and are offered for sale via an international expressions of interest campaign.
Cross says The Reef House is the last remaining “in one line” freehold hotel asset in Palm Cove. It is currently operated by Event Hospitality and Entertainment, however it can be sold with vacant possession.
“The current owners have done a fantastic job returning the property to its former glory via an extensive refurbishment program which has repositioned the Reef House as one of Australia’s best boutique hotels,” Cross says.
The potential sale of The Reef House would complete a quartet of North Queensland hotel sales, with Rydges Esplanade, Rydges Tradewinds and the Novotel Cairns all transacting in the last three months.
Meanwhile, Bunz says the rezoning of the Rydges South Park land significantly increases its appeal.
“It is one of the very few opportunities to acquire a well performing hotel asset in Adelaide,” Bunz says.
“The market is devoid of quality hotel offerings at present and the Rydges South Park represents a very popular price point for investors. Recent zoning changes also allow for significant development upside.”