HTL Property announce the sale of the freehold going concern interest in Far North Queensland’s Madison Plaza Hotel; a mid-scale hotel positioned in the heart of Townsville – an international destination and a major regional city, attracting tourists and corporate visitors alike.

Paul Nyholt, Queensland Director and Andrew Jackson, National Director, negotiated the transaction on behalf of valued client, Morgan Hotels Pty Ltd. Following a well contested Expression of Interest sale process, the hotel has been sold to a private Asian investor making its first foray into the accommodation hotel sector; and emblematic of the origin of Asia based capital connections enjoyed by HTL Property agents and their affiliates.

The Madison Plaza Hotel Townsville is a 4 star hotel comprising 93 well-appointed rooms and five commercial tenancies. The accommodation is complemented by high quality facilities including an indoor swimming pool, guest lounge with bar, off-site parking and extensive function facilities that can cater for up to 200 people. The Property generated around $2.85 million in Gross Revenue in FYE 2024.

The property has been sold with vacant possession and the incoming purchaser will be looking to rebrand the asset following a refurbishment program.

Paul Nyholt advised that there was strong investor interest for Townsville from a wide buyer pool.

“We had very broad interest that was beyond just traditional hotel investors, and also an unexpected quantity that were from outside of Queensland” Nyholt advised.

“Queensland has benefited from strong growth in visitor numbers, and this is in turn is driving revenue growth and consequently renewed investor interest for accommodation assets across all sub sectors” added Nyholt.

“The interest in this hotel asset was driven by buyers that had a strong belief in the major regional centres of Queensland, and what they each have to offer; which can often include superior returns to those seen in capital city assets” Nyholt believes.

“Townsville is a globally renowned tourist destination, famed for its unique access to the Great Barrier Reef and Magnetic Island, as well as being the gateway to Far North Queensland. It is also a major regional city, home to countless mining and processing facilities; the Lavarack Barracks, Australia’s largest army base and the James Cook and UCQ Universities respectively. It is also a major centre for both Federal and State Government offices” concluded Nyholt.

“We received five strong bids at the close of the first round of the EOI process for this hotel. We have seen a marked uptick in investor engagement in the last few months of 2024 and which has resulted in a number of strong sales being concluded” commented Andrew Jackson, HTL Property’s National Director.

“In this last 4-5 weeks alone we have concluded sales of motels, caravan parks and hotels to the tune of $200m in total value; and spanning Sth Australia, Victoria, NSW and QLD. What started as a relatively slow year from a transactional viewpoint, has certainly ended with heightened deal flow, stronger enquiry and sentiment generally” Jackson added.

“We have a number of deals in the final stages of due diligence that we will be in a position to announce early in the new year, and we believe this higher level of engagement and follow through will continue well into 2025 and beyond” Jackson concluded.

Related Reading:

To view more hotels for sale or sold click here

Top-performing Townsville CBD Hotel for sale by HTL Property | The Hotel Conversation