West Australian-based Facilimate Hotels has continued its Queensland expansion with the purchase of Mackay’s Coral Cay Resort.

The deal represents the group’s third purchase in Queensland, following its acquisition of the Pacific Hotel Cairns and Urban Hotel Brisbane. It boosts its portfolio of owned and operated assets to six across the ACT, Western Australia and Queensland.

CBRE Hotels’ agents Hayley Manvell and Wayne Bunz negotiated the sale on behalf of a Queensland fund.

At a glance:

• WA-based Facilimate Hotels has continued its Queensland expansion with the purchase of Mackay’s Coral Cay Resort.
• CBRE Hotels’ agents Hayley Manvell and Wayne Bunz negotiated the sale on behalf of a Queensland fund.
• The deal represents the group’s third purchase in Queensland, following its acquisition of the Pacific Hotel Cairns and Urban Hotel Brisbane.

Located on a large 9,148sqm site, the hotel comprises 82 one, two- and three-bedroom apartments, a restaurant, two meeting rooms, a swimming pool, gymnasium, manager’s residence and outdoor car parking.

It is situated 1km south of the Mackay town centre and 4.5km from Mackay Airport.

“This sale is clear evidence that investor sentiment is on the rise for counter cyclical, resource centric markets such as Mackay, which are showing clear signs of recovery following recent mining project approvals,” CBRE Hotels’ Senior Negotiator Hayley Manvell noted.

The asset attracted strong interest, with the hotel’s strong financial performance a clear draw card for investors.”

Coral Cay Resort will be the first regional property for Facilimate Hotels.

“With the hotel situated between our Brisbane and Cairns hotels, we identified synergies in adding the asset to our portfolio and increasing our footprint in the Queensland market,” Facilimate Hotels Managing Director, Stephen Lauder, said.

“Our investment strategy is driven by the desire to purchase hotels with vacant possession in key cities and regional markets. We are then able to undertake repositioning programs, involving refurbishment works and a new sales and marketing approach to centralise support services.”

The deal comes amid forecasts that Queensland could once again lead hotels sales activity in Australia in 2019, after being the country’s most active hotel investment market last year.

Ms Manvell said CBRE Hotels currently had over $100 million+ in Queensland hotel sales under agreement or awaiting settlement, with announcements pending.

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For further information, contact Hayley Manvell and Wayne Bunz at CBRE