Hotels, Tourism and Leisure asset specialist, HTL Property, has this week announced the sale of multiple regional freehold hotels with a total deal value in excess of $22 million dollars.
Whilst comparatively less affected regional areas in NSW are likely to become popular domestic destinations following the relaxation of social distancing restrictions, savvy investors have commensurately identified strategic acquisition opportunities; and in doing so, are securing assets ahead of the well publicised and expected rebound.
Some of the hotels sold include the Post Office Hotel in Moree, the Royal Hotel in Condobolin, the Neath Hotel in the Hunter Valley, and the Yenda Hotel in Griffith.
All hotels were sold to an even mix of local regional and Sydney based buyers. With Moree’s stately Post Office Hotel selling to a well- known local Northern NSW hotel operator following a very active closed tender process.
“Agriculture, logistics, infrastructure and mining related industries have been particularly resolute in the face of the COVID-19 outbreak, and we feel that regional markets that have an overweight exposure to these industries will likely respond very quickly post 1 June” advised Xavier Plunkett of HTL Property.
“Lower population density and fewer virus transmissions generally in the regional areas provides further optimism to the regional pubs and accommodation sectors respectively; and suggests to us the potential for some well-placed positivity to the shape of the ROE model our investors are typically attracted to” Plunkett concluded.
“From a whole of agency perspective, we’ve been buoyed by the willingness from both buy and sell-side parties to see this period as an outlier, or isolated juncture” advised HTL Property Managing Director, Andrew Jolliffe.
“Positive sentiment is being matched by positive action, and those willing to move rather than freeze in this marketplace can expect handsome financial and strategic reward over the short, medium and long-term horizons” concluded Jolliffe.
The multiple regional hotel sales concluded in May closely follow the sale of the Australian Hotel in Cooma, which was also sold this year prior to auction by HTL Property.