To be sold on a going concern basis, the three licensed properties feature a combined 4.58 hectares of freehold land, 132 accommodation rooms and 90 gaming machines, generate revenues of circa $17 million and achieve an EBITDA of almost $3.7 million.

Tasmania’s economy has been the beneficiary of consistent growth in population, employment, industry and tourism, positioning all three assets for a very promising future.

JLL Hotels & Hospitality Group have been exclusively retained to market the three properties, either in-one-line or separately, via an expressions of interest campaign. 

Peter Harper, Executive Vice President, said “Tasmania has experienced strong increases in domestic and international tourism as the state is increasingly recognised for its natural beauty, exceptional food & beverage offerings, adventure activities, and numerous major attractions and events. This growth should continue due to a range of notable drivers including the runway extension allowing for international flights and proposed Antarctic tourism base at Hobart Airport.”

See also: Get to Know Peter Harper - Executive Vice President of JLL Hotels & Hospitality Group

“A new Liberal government legislated gaming ownership and tax regime is expected in the next 12 months, and believed likely to mirror the highly lucrative Victorian model moving from a three party operator system to a two party operator system delivering large uplifts in gaming profits to owners and taking positive effect in 2023,” said JLL’s Mathew George.

“A stable government and interest rates remaining at an all time low is significantly benefiting Tasmanian investment,” he added.

JLL’s National Director, John Musca said “the growth opportunities and scalability of these assets will drive on significant interest from national hotel groups and aggregators looking to accelerate the revenue and EBITDA performance of their existing portfolios”.

See also: Get to know John Musca, National Director of Investment Sales, JLL Hotels and Hospitality Group

He added, “Opportunities like this, where we can provide buyers with a stable investment platform, upside and growth at a yield point traditionally more attractive than in New South Wales or Victoria, and the opportunity to establish a foothold in one of Australia’s key growth markets, will appeal to numerous buyers.”

In addition, political and economic stability in the state has delivered economic growth for the last 20 consecutive quarters, cooinciding with a current population of 520,000 slated for growth.

Tourism visitor numbers are up 6.4% for March 2018 on the previous year, and the Hobart and Launceston Airports upgrades (terminals and runway extensions) will cater for high increases in domestic and international visitors.

This above trend population growth in Tasmania and high employment levels are contributing to a buoyant housing market with house price growth among the highest in Australia.

To discuss the portfolio sale in further detail, phone or email Peter Harper or Matthew George via the below contact details.

See also:

AccorInvest Australian Hotel Portfolio for sale JLL Hotels

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