Quest Hotel sold as interest rates stabilise15 September 2023
As transactional volumes in Brisbane’s hotel market continue to increase through 2023, a Queensland-based hotel group has just acquired the freehold interest in Quest Chermside.
The hotel was sold by CBRE Hotels agents Hayley Manvell and Wayne, who ran an Expression of Interest campaign for the asset.
Positioned on a 1,220sqm freehold land parcel, Quest Chermside comprises 54 serviced apartments with studio and one-bedroom configurations, on-site reception, meeting and conference facilities and undercover car parking. The hotel is subject to a long term lease to a Quest franchisee, with options through to 2038.
CBRE Hotel’s Director Hayley Manvell said, “The ability to acquire quality freehold accommodation assets within Brisbane’s tightly held and sought-after hotel market are highly coveted opportunities due to their rarity, coupled with the stable and secure income stream they provide an owner”.
“As interest rate volatility has stabilised over the preceding months, we have seen a marked increase in enquiry levels for Brisbane hotel assets from both domestic and international capital sources, looking to acquire a foothold in the region.”
‘Chermside is one of the city’s most rapidly developing areas located in Brisbane’s northern growth corridor, underpinned by health care exposure, retail, sporting groups, government industry and defence force presence.’
After a period of limited hotel transactions in Brisbane, the strong recovery in the city’s tourism industry coupled with the unprecedented levels of infrastructure investment in the lead-up to the 2032 Olympic Games, has seen a number of significant sales take place.
CBRE has been responsible for transacting a number of the major hotel sales in the Brisbane market recently, including The Inchcolm by Ovolo, Sofitel Brisbane, The Fantauzzo, Oakwood Hotel & Apartments and the Mantra Spring Hill.