The Mercure Kawana Waters has sold to the Australian Rugby League Commission (ARLC) in what is the largest hotel transaction on the Sunshine Coast in over five years.

The sale follows a highly competitive on-market Expression of interest process, conducted by JLL Hotels & Hospitality Group’s Gareth Closter.

The 81 room & suite hotel struck a chord with investors given its excellent guest offering and proximity to major demand generators such as the Sunshine Coast University Hospital which drives an occupancy rate above 84%, and genuine trading upside potential.  

The ARLC was further attracted to the Mercure Kawana Waters as it is the closest hotel to the Sunshine Coast Stadium, which is soon to be re-developed as the site of a new international indoor sports centre to be utilised for the Brisbane 2032 Olympic Games and the stadium is also used by the Redcliffe Dolphins for some games.  

The sale represents the third hotel that the ARLC has purchased in the past 18 months following the acquisition of the Gambaro Hotel in Brisbane and the Quest Woolooware Bay Hotel.

The on-market Expression of Interest sales process yielded nine offers from local, interstate and international groups with a deal being swiftly finalised.  “This sale further demonstrates the institutionalisation of the mid-market hotel sector with a variety of sophisticated buyers actively seeking such opportunities to add to their existing holdings,” Mr Closter commented.  

“This asset class has historically had fragmented ownership dominated by private investors, however we seen considerable amalgamation in recent times,” he continued.

The transaction will see the ARLC partnering with Accor and operating the hotel under a franchise agreement with the Mercure brand. Sarah Derry, CEO Accor Pacific, stated “We look forward to this new chapter in our partnership with the NRL and are excited about the opportunities it will bring. Together, we can further enhance the connection between sport and our community, making a positive impact on both the tourism and sporting sectors in Australia."

The Mercure Kawana Waters offers an incredibly rare hotel of scale in the Sunshine Coast market, one of the most consistently performing travel and leisure destinations in the country.  “Opportunities of this nature in South-East Queensland are highly sought after, let alone in a premium location on the Sunshine Coast,” Mr Closter said.