JLL is pleased to announce the successful sale of two prominent hotels in Perth.

Andrew Langsford, Senior Vice President at JLL Hotels & Hospitality Group, and Sean Flynn, Senior Director of JLL Capital Markets, WA, facilitated the transaction.

Andrew Langsford noted "The sale involves two well-established accommodation assets held by family interests for over 30 years, offering dominant land holdings. The strategic locations between Perth's CBD and the Airport, as well as their proximity to major attractions, proved highly desirable for investors."

The Great Eastern Motor Lodge, resting on an expansive 11,892sqm freehold site, boasts 198 apartments across various product offerings. Singapore's Hiap Hoe Limited acquired the property for a sum of $40 million, equivalent to just over $200,000 per room.

Hiap Hoe expressed their rationale for the acquisition in a release to the Singapore Stock Exchange, highlighting the property's convenient transport connections and its status as a focal point for the inner-city suburb of Rivervale.

The hotel presents an appealing investment opportunity with high occupancy levels, effectively increasing Hiap Hoe's recurrent income streams.

The Flag Motor Lodge, occupying approximately 9,865sqm of freehold land, showcases 116 rooms, a restaurant, swimming pool, and generous parking.

The property was acquired by a first-time investor in the Australian hotel market from the United States for $17 million or $147,000 per room.

Sean Flynn commented "The strong interest experienced during the sales campaign highlights the attractiveness of the overall Perth market and the growing confidence in the Western Australian economy. Given the current housing crisis gripping the state, the focus of interest was very broad including build-to-rent operators, and even the state government”.

“We had a diverse range of investors vying for these properties, with hotel investors ultimately securing the successful bids," noted Mr Langsford.

“The thriving Perth hotel market is evident from the YTD January 2024 STR results, which indicate a remarkable 40% increase in Revenue Per Available Room (RevPAR) compared to pre-Covid 2019 numbers.”

JLL has been at the forefront of the Western Australian market, completing several successful deals over the past 14 months, including the Great Eastern Motor Lodge, Seasons of Perth, Geraldton Motor Inn and more recently the Rendezvous Perth Central. The firm anticipates announcing more exciting transactions in the coming months.