Two large scale leasehold accommodation assets that offer scale and strong profits are being offered for sale by Gareth Closter, Senior Vice President, JLL Hotels & Hospitality Group via Offers to Purchase. 

Featuring an opportunistic price guide of 3.25x net operating profit, or a 30% plus yield,  these assets would be a great addition to a portfolio for an owner looking to increase profits and would also be fantastic opportunities to own as an individual operator.

The long-term leasehold interest in the Hotel Tropiq, Cairns, and The Robert Towns, Townsville, comprise of going concern accommodation opportunities with 90 keys and 47 keys respectively.  Situated in the major regional Queensland hubs of Cairns and Townsville, both properties have strong demand drivers and provide a substantial net operating profit of $1.2 million p.a. & $420,00 p.a. (approx.).

“The profits and returns these opportunities offer are dramatically higher than freehold alternatives on offer and should be considered a genuine alternative given their scale and substantial returns” Mr Closter said.

Recent refurbishment of both properties, completed in April and November 2022, is generating improved profits on a month-by-month basis as they increase reputation and welcome return guests.  Both the Hotel Tropiq and The Robert Towns could be owner operated or fully staffed and run under management, as the current owner does, with the opportunity to retain the staff and continue current operations.

The leases are extremely long term in nature with 24 years plus on offer with favourable lease terms for the operator.

The Hotel Tropiq is predominately targeted at value focussed leisure travellers and families who like the openness of the pool area and playground and are looking for a hotel with a tropical and homely vibe. The Robert Collins predominately attracts a mid-level corporate traveller looking for a mid-tier property with openness and easy parking and attracts many return guests.

The leasehold interest in the Hotel Tropiq and The Robert Towns are available via Offers to Purchase with a price guide of $3,900,000 (Hotel Tropiq) & $1,365,000 (The Robert Towns) or combined $5,265,000 based on a multiplier of 3.25x net operating profit.

To request more detail on the sale please contact JLL Hotels & Hospitality’s Gareth Closter via the contact details below.

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