A high-rise hotel that has been a part of Brisbane’s skyline for more than 50 years has come to market.
The Pacific Hotel on Wickham Terrace, Spring Hill opened in 1970 and comprises 179 guest rooms and suites ranging from 27 to 58 square metres.
The 12-storey hotel is being sold by owner-operator Pacific Hotels.
CBRE Hotels’ Wayne Bunz and Hayley Manvell managing the expressions-of-interest campaign for the freehold going concern interest in The Pacific.
The hotel was officially opened on the November 17, 1970 under the name Gazebo Terrace Hotel.
It has undergone numerous name and ownership changes and has traded as the Gazebo Ramada Hotel and Goodearth Hotel among others.
For decades it was recognised as one of Brisbane’s best international hotels, and the hotel’s restaurant on the 10th floor was known as ‘the’ place to wine and dine if you wished to impress.
The 4-star hotel on a 2899sq m freehold site underwent a significant $8-million refurbishment in 2019-2020.
It includes the Osteria Roma Restaurant, multiple conference and events spaces, outdoor swimming pool, gymnasium, guest laundry and 78 car spaces over four levels.
Currently owner-operated under the Pacific Hotel brand, the asset is being offered for sale with vacant possession—its future operational flexibility expected to be one of the biggest factors driving broad investor interest.
CBRE expects the hotel to generate significant local and offshore buyer interest, underpinned by both the growing infrastructure and tourism amenities being developed in the city and the current strength in Brisbane’s tourism market.
Domestic demand has experienced 22.7 per cent growth from pre-pandemic levels while domestic spend has risen by 45 cent—the second highest growth rates in Australia.
The sale campaign for The Pacific Hotel follows the recent sales by CBRE Hotels of Inchcolm by Ovolo Hotel Spring Hill, Sofitel Brisbane and Quest Chermside.
Singaporean groups acquired two of the assets, with Inchcolm by Ovolo bought for $25 million by Invictus Developments and Sofitel Brisbane purchased for $177.7 million by CDL.
“Hotels continue to be an asset class of choice given the sector’s positive market fundamentals and attractive risk adjusted returns,” Bunz said.
“We are seeing a broad range of investors seeking growth via hotel assets, and with international tourism still recovering, particularly from China, we forecast this growth to continue.
“We are seeing a resurgence of investment activity in the Australian hotel sector as both local and overseas buyers see long-term potential for higher returns than those offered by other countries or property sectors.
“Brisbane in particular, is one of Australia’s most sought-after hotel investment markets. With the Olympics in 2032, the city is viewed as a tier 1 destination for astute hotel investors, with revenue per available room (RevPAR) having risen by 49 per cent since 2019.”
