Queensland-based Collective Hotel Management has established its footprint in Sydney with its acquisition of the management and letting rights to the short-stay Park Regis Concierge Apartments in Cremorne.

The sale of the rights to the 100-apartment complex, handled by ResortBrokers Director Alex Cook and Greater Sydney Broker Tim Mayoh, sees Collective expand its management rights portfolio beyond its existing Brisbane and Melbourne base.

Collective operates the management rights to some of Brisbane’s landmark accommodation properties, including the 272-unit Gabba Central in Woolloongabba, which sits across the road from the city’s future Olympic precinct, and the 44-unit heritage-listed The Manor Apartment Hotel in the CBD. In Melbourne, it operates the 127-room Ritz Geelong, the 109-room R Hotel Geelong and 60-room Vue Apartments & Day Spa.

Cook says Collective was attracted by Park Regis’ fantastic ROI and blue-ribbon location. Located on Military Road, Cremorne’s main thoroughfare, Park Regis enjoys views across the Lower North Shore to Sydney Harbour. The short-stay complex, which offers studio and one-bedroom apartments, enjoys solid leisure and corporate trade at 76 per cent occupancy.

“A blended multiplier of circa 4x (due to being in NSW), with a net profit in excess of $1 million, produces a phenomenal return,” says Cook. “The same property on the Gold Coast would attract a six or six-and-a-half times multiplier. It’s an astute acquisition by a highly experienced management rights operator.”

“Management rights are rare in New South Wales, which makes this a noteworthy acquisition,” adds Mayoh. “Park Regis’ scheme is fortunate to be of a vintage where it is unaffected by legislative changes in recent years that make it harder to get a management rights business off the ground in New South Wales.”

ResortBrokers dominates Australia’s management rights market handling over 45 per cent of sales transactions across the sector.