Demonstrating continued confidence in Brisbane's hospitality sector, another Brisbane accommodation asset has sold.

The PA Apartments, a 40 room apartment complex located at 40 Wolseley Street Woollongabba has been sold in a competitive off-market Expression of Interest campaign by CBRE’s Hayley Manvell and Louisa Blennerhassett.

The 5-storey 4.0-star apartment hotel features 40 individual studio and one-bedroom apartments which feature kitchen/kitchenettes, balcony, bathrooms and laundry. Guest amenities include a swimming pool, BBQ facilities, guest laundry, and secure undercover basement car parking (23 spaces).

This is the third Brisbane hotel sold year to date, after the sales of ibis Budget Brisbane and Pacific Hotel Brisbane, all by CBRE Hotels.

The hotel is located on a freehold 1,014sqm site in Woolloongabba within 200 metres of one of QLD’s biggest hospitals, the PA Hospital, and less than 3km from Brisbane CBD, within easy access of multiple public transport options (including one of the $6.3 billion Cross River Rail Stations under development), hospitals, universities and sporting stadiums.

The hotel transacted at $14.3m, which represented a price per key of $386,486 and a yield of 7.3%.

The asset represented a highly profitable business opportunity as-is, as well as offering the flexibility for other value-add prospects, including for alternate use as a strata title and sell down for residential.

Brisbane's hotel market is set for ongoing growth amid a period of chronic undersupply, with only 193 new rooms under construction or to be delivered outside of the new Queens Wharf Casino. This extremely constrained supply pipeline, largely centred in the luxury segment, positions Brisbane’s existing hotels favourably as demand continues to grow.

For the year ending June 2024, total room nights occupied surpassed 4 million, marking a 3.86% increase over pre-pandemic levels.

Year-on-year data from STR indicates that, as of August 2024, occupancy rose to 82.3% (up 6.8%), and ADR increased to $238.34 (up 3.1%), culminating in a 10.1% uplift in RevPAR to $196.27, reflecting the continued strength of Brisbane’s market fundamentals, driven by corporate and leisure demand in a constrained supply environment.

Notably, Brisbane is one of only two Australian markets where all three key performance indicators have fully recovered to pre-pandemic rates.

Looking forward, leisure demand is forecast to rise as Brisbane's reputation as a premier Australian city continues to grow, bolstered by an active events calendar. Brisbane Airport reported a 39.4% increase in international travel in FY24 compared to FY23, which will be supported by the launch of 10 new international flight routes confirmed for FY25.

As the 2032 Brisbane Olympics approaches, over $47 billion in infrastructure development is underway which will enhance the city's attractiveness to both domestic and international travellers. Brisbane is also set to see the one of the largest population growths over the next decade of any major city, which will further boosting visitor demand (via VFR).

Related readings

Oaks Darwin Elan Hotel for sale by CBRE

Renovated Central Coastal resort for sale - Colliers and CBRE

South East Queensland’s Beechmont Estate for sale - CBRE