HTL Property hotel transaction data 'defies critics'
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HTL Property hotel transaction data 'defies critics'
In the 12 weeks of Federal Government-imposed restrictions, HTL Property has brokered a total of 18 transactions approaching $175m in value
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HTL PropertyThe Illinois Hotel, Five Dock.
In March 2020, after only a few weeks of restrictions, HTL Property socialised the view that the hotel industry would not only weather the headwinds the global pandemic had created for all business models, but would adapt and emerge on the other side a more resilient and determined version of itself.
Critical to this period of forced incubation however, was the need to stay both active and connected.
"As such HTL Property didn't go gardening, didn't relocate office chairs and didn't retreat into the darkness and uncertainty so readily available; only to return when the sun began to shine light at the end of a challenging tunnel" advised HTL Property Managing Director, Andrew Jolliffe.
"Instead, as a long term and meaningful stakeholder in the national marketplace, HTL Property kept the doors open and the lines of communication with its valued audience both clear and accessible."
The Sly Fox Hotel, Enmore. Source: HTL Property
Recent HTL Property transactions - At a glance:
- Neath Hotel, Neath
- Australian Hotel, Cooma
- North Coast NSW Freehold
- Post Office Hotel, Moree
- Yenda Hotel, Yenda
- Royal Hotel, Condobolin
- South Coast Freehold
- Gregory Hills Hotel, Gregory Hills
- Acacia Ridge Freehold, Brisbane
- McLaren's Landing Qld (Leasehold), Stradbroke Island
- Regional Centre Freehold
- The Mill (Leasehold), Bondi Junction
- Sly Fox (Leasehold), Enmore
- Illinois Hotel, Fivedock
- Hunter Valley Freehold
- Top 50 Sydney Gaming Hotel Freehold
- $4 mill worth of Hotel Licences and PME
- Fitzroy Hotel, Windsor
The direct result has been a total of 18 transactions approaching $175m in value, including Top 50 gaming hotels, inner city leaseholds, North and South Coast Freeholds and key assets in Regional Centres.
Mr Joliffe said the level of activity was "emblematic" of an asset class which remained engaged and innovative.
"We have welcomed the support of senior debt markets leaders, who our colleagues at HTL Capital advise are continuing to write new and material business into the sector," he said.
The Gregory Hills Hotel. Source HTL Property
HTL Property National Pubs Director, Dan Dragicevich said a recurring theme had been a distinct lack of stock publicly on the market.
"It is for this reason we anticipate off-market deals and unsolicited offers to be the norm in the short term," he said.
"Undoubtedly volumes are currently down on last year, however we would contend that the primary reason is the distinct lack of stock rather than an unwillingness for purchasers to participate.
"Whilst many industry participants have been espousing a doom and gloom type scenario, the reality is that we are just not seeing that and well priced stock, appropriately marketed by a stable brokerage firm will sell.
Mclarens Landing. Source: HTL Property
"In fact, now is a good time to be bringing properties to the market as well-capitalised hotel groups with strong balance sheets remain hungry for acquisitions" concluded Dragicevich.
HTL Property's Xavier Plunkett said while there had been wide-scale personnel changes within both the pubs and accommodation brokerage sectors, which had perhaps further stymied transactions during the period, stable brokerage outfits continued to report strong sales across the board.
"Gaming continues to be a sought after revenue stream, and the sub-market for poker machine entitlements has remained particularly resilient in the face of COVID-19," he said.
HTL Property Accommodation Director, Nic Simarro said said enquiry for accommodation assets with access to domestic travel origins remains strong.
"We expect this to increase further with the continued easing of internal travel restrictions," he said.
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