In their first major Australian hotel acquisition, German company Commerz Real has acquired the 194-room Brisbane Mercure Hotel and 218-room Brisbane Ibis Hotel for a combined $77 million from Singaporean hospitality trust, CDL representing a yield of 5.3 per cent.

The two hotels last transacted for $53.7 million in 2010. With Brisbane hotel occupancy rates approaching 80 per cent, according to research firm STR, the deal is a boost for the Brisbane hotel market.

Mr Vincent Yeo, CDL CEO commented: "In line with our proactive asset management strategy, the divestment of Mercure Brisbane and Ibis Brisbane allows us to realise the underlying value of these assets and create further debt headroom to continue to actively pursue acquisitions in other markets with stronger growth trajectory, so as to enhance returns for our Stapled Securityholders." 

Commerz Real owns or backs investments in a number of commercial buildings in Brisbane and Sydney, and is also the property fund manager of German bank Commerzbank, which manages real estate investments worth more than $50 billion. 

To discuss the sale in more detail, contact CBRE's Head of Hotels Australia Wayne Bunz via the below contact details.

Click here to view Wayne Bunz' profile on The Hotel Conversation.

See also:

Daydream Island’s $86m redevelopment

Brisbane's Jubilee Hotel redevelopment and office tower upgrade

CBRE reports major tourism projects bringing investment back to Brisbane