Long-time managers of the gracious century-old building, Peter and Christine Tyler of Atlantis Properties, have sold the business through Resort Brokers Australia for a price believed to exceed $3 million.

Brokers Alex Cook and Gareth Closter said, because the hotel operation was the first major short-term management rights transacted in Brisbane for close to two years, it attracted strong buyer interest.

The successful buyer, though as yet undisclosed, is understood to be an experienced Gold Coast-based operator making their first foray into Brisbane.

“The sale reflects a multiplier of 5.8-times, which demonstrates the strength of the market, especially for businesses netting in excess of $500,000 per annum,” Mr Closter said.

“When it comes to properties of this quality and scale, particularly business-only short-term operations with no requirement for the manager to live on site, there is a distinct lack of quality stock currently available.”

The hotel, already surrounded by every city attraction, stands to benefit from massive CBD infrastructure projects that will put the world-class Queen’s Wharf precinct within walking distance and an underground Cross River Rail station at its doorstep.

“Albert Street, at is frontage, is set to become a landscaped pedestrianised space and the new rail station, the first in the city for more than a century, will trigger revitalisation of the whole area, so there is tremendous upside ahead for this hotel,” Alex Cook said.

The heritage-listed hotel started as Brisbane’s tallest tower when it was developed as ‘Perry House’ at the corner of Albert and Elizabeth Streets around 1913.

The former commercial building was extensively redeveloped to reopen as the Royal Albert Hotel in 1996 with 73 elegant strata-titled guest rooms and suites in charming period style, wide hallways and grand 12-foot ceilings.

Under the previous managers it has benefited from an on-going refurbishment and capital improvement program that included upgraded rooms and luxury bathrooms, new lifts (2012), a new roof (2015) and extensive painting and carpeting (2016).

Resort Brokers Australia said the management rights parcel, with 19 years remaining on the caretaking and letting agreements, included an upscale reception, spacious office and extensive storage on title.

“With 56 short term apartments currently in the letting pool, there is also considerable upside potential to increase the number of units under management and build the business further as Brisbane enters a reinvigorated period of economic and tourism growth,” Mr Closter said.

To discuss the sale in further detail phone or email Gareth Closter or Alex Cook via the below contact details.

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