One of Mackay’s leading accommodation properties has been sold with the Mackay Marina Hotel changing hands for nearly $10 million.

The property is Mackay’s only hotel with marina views overlooking the Coral Sea and the eight level, 79-suite property is regularly rated as one of the best in the region.

The sale of the freehold going concern was completed by ResortBrokers, Australia’s leading accommodation industry agency, and included an adjoining 1,412 square metre site, which has development approval for a further 120 rooms.

“This sale highlights the fact there is a genuine rise in investor interest in counter-cyclical mining and resources markets like Mackay which are starting to bounce back,” said ResortBrokers Managing Director Trudy Crooks.

“Savvy investors have started moving in the accommodation sector in anticipation of a recovery and they’re able to secure outstanding assets at really good prices especially in these regional areas,” Ms Crooks said.

The hotel occupies 6,407 square metres of prime waterfront land and the adjoining development site is also on the waterfront and is currently used to erect a large events marquee for nine months of the year.

The hotel was purchased by Mandala Asset Solutions through the Trinity Accommodation Regional Hospitality Fund (TARHF). Mandala specialises in regional accommodation investments and the Mackay purchase adds to its portfolio of 15 properties in regional Australia. It has $43 million in assets under management.

“We’re always on the lookout for quality properties in regional Australia and this is definitely one of the best properties in Mackay,” said Mandala Asset Solutions Principal John Zeckendorf.

“I know the region has endured some tough economic times of late, but we see a definite upside in Mackay. Even without mining it is a big regional centre with a population of around 113,000,” Mr Zeckendorf said.

“Like Townsville to the north, we see signs of life in the Mackay economy and we’ll be well positioned to make the most of this turnaround.”

Mr Zeckendorf says the Mackay Marina Hotel fits in with his proven strategy which is to invest in income-producing regional accommodation-driven assets with operational and property upside.

“We’ll be operating the hotel ourselves and this means a new management team will be put in place,” Mr Zeckendorf said.

“We’ve hired a new head chef and a new head of food and beverage and after these initial changes there will be some major transformations taking place at the property.”

Built in 2005, the Mackay Marina Hotel is located in Mackay’s popular marine, tourism and leisure hub which features a variety of shops, bars and restaurants on the waterfront promenade.

“High quality properties like this rarely come up for sale and the new owner has the added bonus of real scope to develop the business even further with the approval to add that extra inventory,” Ms Crooks said.

“This place is pretty special and really popular with both locals and visitors from Australia and overseas and there’s also the potential to improve the conference and wedding functions side of the business as well,” Ms Crooks said.

Extensive hotel facilities include 24-hour reception and stylish lobby, Latitude 21 Bar & Restaurant (catering for breakfasts, dinners and in-room dining), resort swimming pool surrounded by shaded terraces and tropical gardens and a fitness room.

The property is a popular conference, functions and weddings destination which can host events which hold up to 1,500 guests. The range of rooms and venues includes the Marina View and Captain’s Table Rooms, Pool View Function Area, and The Marquee.

The Mackay Marina Hotel has a selection of well-appointed deluxe, executive and spa suites, all of which include well-equipped kitchenettes and private balconies with stunning marina and ocean views. Additional amenities include secure on-site parking, air-conditioning throughout and a guest laundry on each level.

Source: Resort Brokers Australia