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A landmark five-star hotel in the heart of South Australia’s capital, the Adelaide Hilton, is on the market for the first time in more than three decades.
Currently managed by Hilton Hotels Australia, the property will be available for vacant possession in July, 2026, when the future owners will be able to re-engage with Hilton, self-manage or partner with a different operator.
CBRE is handling the sale through an international expression of interest campaign closing October 15.
Adelaide Hilton is on the edge of the CBD and close to Adelaide Central Market, Chinatown and the Adelaide Botanic Gardens.
It comprises 377 rooms, 20 conference rooms, business lounge, tennis court, gym, and pool. It offers high-quality food and beverage options including COAL Cellar + Grill and The Collins Bar.
The hotel’s size, location, and potential value-add opportunities is expected to attract significant interest from domestic and international investors, CBRE said.
Meanwhile, a new survey of Asia Pacific hoteliers has painted a future of mixed fortunes for the industry in the region.
JLL’s Hotel Operators’ Sentiment Survey is based on 1075 responses from hoteliers, including 225 from Australia, New Zealand and the Pacific, and covers all sectors of the hotel market.
Some markets, particularly in North, South, and Southeast Asia, are anticipating strong growth. Occupancy rates in Australasia are expected to improve in 2025 compared to 2024 but remain below other sub-regions.
Australian hoteliers are generally optimistic about the future. For 2025, 68 per cent predict higher occupancy rates and only 12 per cent forecast lower occupancies.
Year-on-year average daily rates (ADR) are expected to decline in 2024 and 2025 compared to other regions. However, around eight in 10 of Australian luxe and budget hoteliers (79 per cent 82 per cent respectively) expressed positive sentiment about ADR occupancy across 2024-25
Revenue and profit growth is anticipated to be slower in Australia and Southeast Asia compared to other markets including Japan, Thailand, and India. Chinese hoteliers are predicting a decline in revenue and profit.
JLL Hotels & Hospitality senior associate Joseph Sim said the economic situation in China was causing a significant reduction in travel, within the country and externally, which was being reflected in the continued shortfall in Chinese outbound travel to countries including Australia.
“The global situation remains very uncertain, which has led Marriott, Wyndham, and Hilton to suggest consumers may be pulling back on travel demand in the second half of 2024. IHG, on the other hand, remains cautiously optimistic, except in China,” Sim said.
Twenty-eight per cent of Australian respondents are concerned about declining food and beverage (F&B) revenues, while 48 per cent remain optimistic about F&B profit growth. Rising wage costs and difficulty retaining staff are causing HR concerns. And the largest capital expenses are for technological, mechanical and sustainability initiatives.
Despite the challenges, however, investment opportunities remain in the hotel sector.
Brisbane’s Mantra Terrace Hotel has been listed for sale on behalf of a Sydney-based consortium including 8Hotels’ Paul Fischmann, Capit.el Group’s Eduard Litver and Jonathan Hasson.
The recently refurbished hotel, an 85-key property near the Brisbane CBD and the Brisbane Arena development, is being offered for sale through an expressions of interest campaign being managed by CBRE and closing on October 3.
The hotel’s occupancy rates stand at 74 per cent (up 8 per cent year-on-year) and average daily rates at $229 (up 7 per cent year-on-year).
CBRE Hotels national director Wayne Bunz said Brisbane was currently “one of the most in-demand hotel investment markets in Australia, with domestic demand for holiday and business travel outperforming other markets, and all key performance indicators fully recovered to pre-pandemic levels”.
The current management agreement with Accor expires by the end of this fiscal year, offering investors the flexibility to rebrand or manage the property themselves.
The recent sale of the Ibis Budget at Dubbo, in the Central West of NSW, highlighted the continued investor interest in the mid-scale accommodation market.
The property, which comprises a restaurant and 65 rooms with a 75 per cent occupancy rate, was sold by JLL Hotels and Iris Capital to a private portfolio owner.
The asset is in a growing regional city with a population of more than 38,000, and is close to popular tourist attractions such as Taronga Western Plains Zoo.
As well, the area is undergoing substantial renewable infrastructure projects.
The sale follows JLL’s recent mid-market accommodation sales of the Ten Dollar Town Motel in Gulgong and the Mantra Bathurst Hotel.
“As evidenced by these transactions, regional NSW continues to be an attractive investment proposition due to large government funded infrastructure initiatives and excellent tourist attractants,” JLL said.
The JLL report shows that some markets are showing signs of recovery, but others are struggling with economic challenges and rising costs. And yet investment opportunities continue to emerge, particularly in high-demand locations such as NSW and Brisbane.
