The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterWed 07 Sep 16

Cairns Tourism Boost Sways Mulpha Into Hotel Purchase

rlp7934_620x380

Following strong interest in north Queensland hotel investment opportunities, Mulpha Australia has bought the Rydges Esplanade in Cairns for $40 million.

CBRE Hotels National Director Wayne Bunz negotiated the off-market transaction on behalf of Abacus Funds Management Limited.

The four-star Rydges Esplanade Hotel comprises 242 rooms and a range of facilities, including a restaurant and bar, conference venues, a lagoon pool, gymnasium and tennis court.

Mulpha Australia CEO Greg Shaw indicated the transaction was motivated by Cairns' thriving hotel market and is excited about the prospect of growth from the investment.

Underpinning investor interest has been the strong performance of the Cairns market, which has been the leading hotel market in Australia as a result of record international and domestic travel numbers.

For the year ending July 2016, Smith Travel Research figures show average occupancy rose 6.1% to 82.0%, ADR increased 7.4% to $133.90 and RevPAR surged by 14.0% to $109.74.

Mr Bunz said the figures highlighted that investors were turning their attention to leisure offerings as a result of both the current tourism boom and the tightly held nature of the major CBD markets.

“Market conditions are leading investors to consider regional Australian accommodation assets,” he said.

“In 2015, there were 53 hotel transactions across the country, with 60% of those involving assets in capital city markets and 40% related to regional properties.

"So far in 2016, 35% of acquisitions have been in the capital cities and 62% in regional and leisure locations indicating a shift in investor intentions.”

Mr Bunz noted that buyer interest had driven a tightening in regional investment yields, with Cairns properties trading on yields of between 5.88% and 9.3%.

“This is a reflection of investors’ confidence in the market and the significant growth that is being experienced in visitor numbers,” Mr Bunz said.

Mr Bunz added that another attraction for purchasers was the fact that hotels and resorts in regional areas were still being sold at prices substantially below replacement costs.

CBRE believes investor interest in Cairns also comes from a market which is becoming less seasonal.

HotelAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
View All >
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
Markets

Private Credit’s Biggest Risk in Expansion: Sameer Chopra

Taryn Paris
In this exclusive member-only webinar CBRE head of research Sameer Chopra explores the growth of the private credit mark…
LATEST
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
4 Min
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
3 Min
Markets

Private Credit’s Biggest Risk in Expansion: Sameer Chopra

Taryn Paris
2 Min
Deicorp Five Dock Mixed-Use Precinct
Residential

Deicorp’s $1.8bn Inner-West Sydney Precinct Greenlit

Vanessa Croll
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/cairns-tourism-boost-sways-mulpha-purchase