By Clyde Mooney
Believed to be the largest stand-alone hotel sale in the state’s history, Queensland’s Tannum Sands Hotel has been snapped up by Sydney-based The Paul Irvin Hotel Group (PIHG) for around $28 million.
The venue is the third in Gladstone for PIHG, which already own the Young Australian and Rocky Glen hotels, and makes an even dozen for their portfolio across NSW and the sunshine state.
PIHG said it recognised the trading potential of the area, coming on the back of the resources boom and an influx of workers.
“The Tannum Sands Hotel is a sensational acquisition for the Group, and continues our expansion into one of the fastest growing areas in Australia,” says Joe Irvin, PIHG Director.
A ‘material change in use’ was granted by council in July this year, paving the way for the approval of a large proposed mixed-use development that includes 105 residential apartments, 14 townhouses and a new 60 room hotel motel with full conference and function facilities.
The hotel is situated next to Coles-tenanted Tannum Sands Shopping Centre and includes two detached bottleshops, 40 gaming entitlements, public bar The Sand Bar and a 10-room motel.
The 1.7 ha property boasts surrounding ocean views and is only minutes from Gladstone’s best beach.
The sale was brokered by Jones Lang LaSalle Hotel’s John Musca from NSW and Paul Fraser and Lachlan Asprey of the Queensland office.
"Gladstone is enjoying a 25 per cent plus growth in apartment values and a doubling of hotel room rates, with the pace of development nowhere near in keeping with demand. Following in the footsteps of other commodity boom towns like Karatha in Western Australia, Gladstone is the most exciting growth story in the country at present," says Paul Fraser, manager of Jones Lang LaSalle Hotels Queensland.