The integrated 194-room Mercure Brisbane Hotel and 218-room ibis Brisbane Hotel has sold for a combined AUD$77 million from Singaporean hospitality trust, CDL.
In an announcement to the Singaporean Stock Exchange Mr Vincent Yeo, CDL CEO said: “In line with our proactive asset management strategy, the divestment of Mercure Brisbane and Ibis Brisbane allows us to realise the underlying value of these assets and create further debt headroom to continue to actively pursue acquisitions in other markets with stronger growth trajectory, so as to enhance returns for our Stapled Security holders.”
The hotels have been purchased by German asset manager Commerz Real in their first major Australian hotel acquisition.
The group owns more than $30 billion in real estate investments. “Hotel real estate especially in top locations is, because of its attractive risk-return profile, in ever greater demand from our institutional investors,” said Johannes Anschott, member of the board of managing directors of Commerz Real.
CBRE Hotels’s Wayne Bunz and Pro-invest Group acted as advisors on the transaction.
Pro-invest Group’ CEO, Ronald Stephen Barrott said, “The acquisition by Commerz Real represents a unique counter-cyclical opportunity to secure two hotel assets in a prime Brisbane CBD waterfront location.
“The hotels are supported by a triple net lease to Accor until 2021. Although the Brisbane market has recently been adversely impacted by significant new additions to room supply, it is now showing signs of improvement.
“Growth in room night demand remains strong in Brisbane and we believe that these hotels are well positioned to benefit from nearby substantial infrastructure investments such as Queen’s Wharf,” he said.