The Mercure Rockhampton hotel and an adjoining development site are set to be listed for sale later this month amid ongoing interest in regional Queensland investment opportunities.
CBRE Hotels’ Hayley Manvell and Wayne Bunz have been exclusively appointed to manage the Expressions of Interest campaign on behalf of hotel management and acquisition company Fifty Group.
“Having repositioned the Mercure Rockhampton through significant capital investment, we are now looking to divest and recycle capital into our next phase of growth. Given the hotel’s prime waterfront location, strong brand presence, and recent refurbishment, we see this as a compelling opportunity for the next owner to build on the momentum we’ve created,” Fifty Group’s Tom Wang said.
Situated on a substantial 4,657sqm freehold CBD riverfront parcel, the hotel features 74 guest rooms, a conference and meeting centre, Riverside Restaurant, and recreational facilities, including a swimming pool, gymnasium, substantial on-site parking and a detached two-bedroom manager’s residence.
The Mercure Rockhampton is the only Accor-branded hotel in the region enjoying a well-established presence with no significant current or foreseeable competition. The hotel is being offered with vacant possession, allowing incoming purchasers the flexibility to continue current operations or alternatively rebrand the asset under their own branding.
Approximately $4m has recently been expended on refurbishing the property, including bathrooms, guest rooms, exterior and common areas.
Adjoining the hotel is a 1,447sqm parcel of land prime for development, offering potential to join with the Mercure and increase the scale of the hotel, or be developed into a variety of potential uses, including commercial, residential and/or retail, subject to council approvals.
CBRE Hotels’ Director Hayley Manvell said the offering presented a compelling opportunity for both investors and owner-operators to capitalise on the region’s economic momentum after being announced as one of the upcoming Olympic venues.
“This is an incredibly well-positioned asset in one of Queensland’s key regional hubs. The opportunity to acquire a top performing hotel which has recently been refurbished, has little competing stock, offers vacant possession and future potential positions this as an exceptional investment opportunity which will be highly sought after,” Ms Manvell said.
In 2024, the hotel achieved an 84% occupancy and an average daily rate of $183, generating an EBITDA of over $2m.
Ms Manvell added, “The opportunity offers investors an ROI substantially above the cost of debt, at the start of what we expect to be an aggressive rate cutting cycle, which is expected to underpin strong ongoing returns for an incoming purchaser.”
CBRE Hotels’ National Director Wayne Bunz said, “The hotel’s robust historic financial performance reflects its position as the region’s leading hotel, with its full service offering driving performance across multiple diverse income streams including rooms, conferencing, and the restaurant, which has a strong local presence. There are strong underlying fundamentals driving the region, with Rockhampton benefiting from large-scale infrastructure and mining investment fuelling corporate travel.”
The freehold going concern in the Mercure Rockhampton and adjoining development site is being offer for sale individually or in one line, is set to launch later this month via an Expression of Interest campaign closing late June 2025 (unless sold prior).
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