Melbourne’s Zagame Corporation is moving to sell Vanuatu’s Grand Hotel & Casino at Port Vila to capitalise on surging buyer interest in leisure oriented accommodation assets.
The 74-room waterfront property is the premier hotel and casino venue in Vanuatu.
Situated 10km from the airport at the heart of Port Vila’s business and entertainment precinct, the eight-level waterfront hotel offers a variety of income streams from its casino, accommodation and fooD and beverage facilities.
CBRE Hotels’ Rob Cross and Andrew Jackson will steer the Expressions of Interest campaign, which closes 30 May 2017.
Mr. Cross said long time owners Zagame Corporation were selling the hotel and casino complex to focus on their extensive pub and accommodation interests in Australia.
“We’re expecting considerable interest, predominantly from Australian and New Zealand investors,” Mr. Cross said.
“The campaign provides an opportunity to acquire the best hotel and casino in Vanuatu, which is currently owner operated but is being offered with vacant possession.
"While the hotel and casino has enjoyed trading growth in recent years, the introduction of a professional management company with a strong brand reputation could lead to further trading upside.”
Constructed in 2003, the four-star hotel overlooks Port Vila Harbour and offers views towards Iririki Island.
The casino, regarded as the best in Vanuatu, features 15 gaming tables and 136 slot machine, with a VIP top floor gaming room.
The hotel also features a restaurant, conference rooms, four bars and pool and spa facilities.
CBRE’s Mr. Jackson said investors were increasingly targeting leisure-oriented investment opportunities given the tightly held nature of Australia’s CBD hotel markets.
This had been highlighted by a series of Cairns hotel transactions in 2016 - specifically the Rydges Tradewinds, Novotel Oasis and Rydges Esplanade - for a combined total of $122 million.
“In the case of the Grand Hotel & Casino, the property is poised to benefit from the Vanuatu Tourism and Infrastructure Project, which is funded by the New Zealand Aid Program,” Mr. Jackson said.
“The project will concentrate on the rehabilitation of Port Vila’s seafront and the main wharf areas, providing a central pier observation platform, sea steps, a water taxi jetty, seawall promenade and walkways, markets buildings and playgrounds.”