Irvin Hotel Group buys the Coolangatta Sands Hotel
Sydney-based hotelier Joe Irvin, of the Irvin Hotel Group has added to his Queensland assets, buying the Coolangatta Sands Hotel in a deal brokered by HTL Property.
Irvin recently sold the Belmont Hotel in Newcastle recently and advised HTL that his plan was to use that capital to buy another asset in the same class, with Queensland a strong target as the family group already has significant holdings in the state.
“Like the Hotel Steyne, beachside commercial property holdings enjoying a prosperous hospitality function and downstream alternative use levers along the Australian East coast, remain maybe the most sought after of all commercial real estate investment opportunities,” said HTL Property’s Managing Director Andrew Jolliffe.
While not revealing specific details of the price, HTL confirmed the sale mirrored the firm’s pre-campaign market guidance.
“We’re buoyed by the level of interest the Southern States of both NSW and Victoria had in the asset, and consequently the market remains focused and if anything, now appears to us emboldened by the clarity the political and economic topography consequently provides all participants,” said HTL Property’s National Director Dan Dragicevich.
Carrying on from its successful first 12 months, the Coolangatta Sands Hotel sale represents HTL’s fifth significant hotel sale in this financial year, which HTL said highlights the market confidence in pub sales.
“The Coolangatta Sands Hotel sale represents the highest price paid for a Sth East Qld freehold hotel asset this year, and underpins our view that significant hospitality assets in gateway or tourism centric regions are as irreplaceable as they are in demand” advised HTL Property’s Qld Director Glenn Price.
Jolliffe added: “With continued downward pressure on interest rates, the emerging prevalence of non-traditional sources of funding and the struggle between supply and demand perpetually imbalanced in favour of the latter, we are maintaining our market guidance that yields will contract further before they exhibit any form of augmentation.
“Our firm successfully sold 44 hotels in 52 weeks last Financial Year, and our run rate so far this year is ahead of that; suggesting to us a clear level of purposive market confidence and momentum.”