Following the recent accommodation sale announcements by JLL Hotels & Hospitality Group, there is underbidder capital ready to purchase mid-market accommodation assets in regional NSW.

JLL Hotels has recently sold the Ten Dollar Town Motel, the ibis Budget Dubbo and the Mantra Bathurst, all of which sold to separate private purchasing parties. Regional NSW continues to be an excellent investment proposition due to impressive underlying commercial trade and substantial infrastructure projects. Complimenting these drivers is a sustainable short term visitor accommodation market that continues to flourish as travellers continue to explore the regions.

In response to heightened investor demand, JLL Vice President Greg Jeloudev notes ‘Regional accommodation assets are highly sought due to their high replacement cost, excellent profitability, and relative ease of management. Investors are particularly drawn to assets underpinned by consistent levels of trade and have operational upside potential.’

In comparison to metropolitan assets, regional venues generally offer a higher yield which is attractive to prospective purchaser’s from a cash flow and debt servicing perspective. Furthermore, the increase in construction costs provide protective measures from future competition.

If you own a regional NSW accommodation asset and are considering selling, please reach out to JLL agents for a confidential discussion.

Related Readings 

JLL announces Record Gulgong Hospitality Transaction

JLL advises Iris Capital in regional NSW divestment

JLL facilitates the successful sale of iconic Mantra Bathurst Hotel sold at 34% premium