Pelathon Management pays $8.5m for hotel
Pelathon Management has paid $8.5 million to acquire the Grand Hotel in Cairns along with two adjoining sites.
Pelathon had managed the hotel for 18 months under a lease agreement prior to exercising its option to buy the property outright.
Pelathon’s Managing Director Jaz Mooney said; “This is another prime example of an acquisition in a market where we believe there is a strong short, medium and long-term growth potential driven by a robust economy and a proactive local council.”
Established in 1926, the Grand Hotel is on a 4,060sqm site opposite the Cairns Central shopping centre and featured 35 gaming machines.
The site also includes 176 metres of frontage to three streets, a drive through bottle shop, six adjoining retail shops and a former service station now being used as a hire depot.
CBRE Hotels Director Paul Fraser and CBRE Cairns Managing Director Danny Betros negotiated the sale of the landmark Cairns pub on behalf of private owners Runnico Pty Ltd.
“The hotel has undergone a significant renovation, including the main bar, alfresco dining areas and an upgrade of the gaming room to accommodate increased machine numbers,” Mr Fraser said, noting that this had completed Stage 1 of Pelathon’s plans for the property.
Mr Betros noted that Stage 2 was now well underway, including a redevelopment of the adjoining sites.
“This will maximise the highest and best use of the total site, with plans currently underway for an exciting multi-use development in the near future,” Mr Betros said.
It is believed these plans include high-rise development.