The freehold interest in the Pacific Hotel Brisbane has been sold to the Gold Coast based Singh Enterprises for $44.8 million.
CBRE Hotels’ Wayne Bunz and Hayley Manvell negotiated the sale on behalf of the Perth-based Pacific Hotels Group following an Expression of Interest campaign.
Singh Enterprises, led by father-and-son team Teja and Sammy Singh, is a family company with a mix of assets including self-storage, service stations, and significant investments in the poultry sector.
The deal follows a string of recent hotel sales in Brisbane, including Incholm by Ovolo, Quest Chermside and the Sofitel Brisbane last year, all of which were negotiated by CBRE Hotels.
Situated on a substantial 2,899sqm inner-city land parcel above Wickham Terrace, the 12-storey, 4.0-star Pacific Hotel Brisbane comprises 179 guest rooms and suites of various configurations.
The hotel features significant guest facilities including a restaurant and bar, multiple conference and events spaces, outdoor swimming pool, gymnasium, guest laundry and 78 car spaces over four levels.
CBRE Hotels National Director Wayne Bunz said, “Brisbane continues to be Australia’s most sought-after hotel investment market, with record interest and enquiry from interstate and international capital sources looking to acquire accommodation assets, however, there continues to be limited hotel investment opportunities.”
Ms Manvell added, “The city is emerging as a highly attractive tourism destination thanks to Brisbane’s growing population, transformative development projects and worldwide exposure via the upcoming 2032 Brisbane Olympic Games, with tourism and visitation levels expected to be double that of pre-Covid levels by 2032.”
Based on CBRE Hotel’s ongoing research in relation to the Brisbane supply pipeline, there are currently 1,556 rooms which are either currently under construction or proposed in Brisbane, however only 452 which will open in the immediate future:
In terms of performance Brisbane Average Daily Rate across the market is forecast to sit at around $246, after two years of substantial rate uplift. Occupancy is forecast to sit in the mid 70% range, after moderate growth off the back of strong demand from a business, educational and event perspective as well as the continued recovery in international room night demand.
