Perth CBD hotels looking for new ownership

13 September 2023

Perth’s Adina Apartment Hotel, the Drunk Elephant Bar and Bistro and Akara Hotel have been listed for sale.

The CBD assets are located on Barrack and Wellington Street and are set to attract interest from a broad range of buyers.

The Adina Apartment Hotel comprises 100 large, serviced strata apartments, including the strata lot of the Drunk Elephant Bar and Bistro and is operated under a lease agreement with Toga Far East, an international hotel operator.

The Akara Hotel has 39 dorm rooms and is currently owner-operated with vacant possession, providing an opportunity to develop the 506sqm site.

CBRE’s Ryan McGinnity and Aaron Desange are managing the sale via an Offers to Purchase campaign closing Tuesday 17 October 2023.

“The two hotels and bar offer a mixed investment opportunity. With the property’s proximity to the ECU campus, which is currently under construction, we’re expecting interest in the development of student accommodation, particularly for the Akara Hotel, while the long-term serviced apartments at the Adina Hotel could interest investors looking for rental-style accommodation as the demand for residential accommodation, particularly build-to-rent, is growing in Western Australia,” Mr. McGinnity said.

Mr. Desange added, “The WA economy is well placed, exhibiting the highest economic growth outlook in the country positioning WA as one of the strongest nationally and globally. The resource sector underpins this growth, with $2.5 billion in mineral exploration over the year to Q1 2023, up 46% from Q4 2020.”