The Pullman Cairns International has been listed for sale by Prime Value’s Shakespeare Property Group after nine years of ownership.
The five-star city centre hotel occupies a 8,139sqm site and comprises 324 guest rooms, 11 conference and meeting rooms, a lobby bar, a day spa and gymnasium facilities, and basement parking for 184 cars.
CBRE Hotels’ Michael Simpson, Wayne Bunz and Hayley Manvell are managing the sale via an Expression of Interest campaign set to be launched later this month.
Accor Hotels manages the property under the Pullman brand, but vacant possession of the hotel, which underwent a $17 million refurbishment in 2021, is available upon sale.
The offering also includes a two-level, 2,644sqm retail and commercial arcade, ‘Village Lane’, featuring 23 tenancies.
“This is arguably Cairns’ best hotel and has immense potential due to its central location, extensive size, and various value-add opportunities. These factors are expected to generate significant interest from both domestic and international investors,” Mr Simpson said.
“As the largest luxury hotel in Cairns in room size, scale and amenities, as well as possessing the largest conference facilities outside the Cairns Convention Centre, the hotel attracts a broad range of guests.
“This opportunity offers purchasers historically consistent financial performance, through diversified income streams including accommodation, food & beverage, conferencing, day spa and passive revenue from the retail and commercial arcade and basement car park.”
Mr Bunz added, “The vacant possession available upon sale opens up the opportunity to rebrand and reposition for owner operators or alternate brands”.
“In addition, the increased cost of construction post-pandemic has materially impacted the viability of new hotel projects, with significant barriers to entry to replicate this type of product in the market, enhancing the attractiveness of this offering.”
Average hotel room rates in Cairns have risen by 41% since pre-pandemic levels and the market is still in the process of recovering when it comes to occupancy rates and international visitors.
As at the end of December 2023, international visitation was 21%, this was a decrease from the pre-pandemic level of 45%. However, with the gradual recovery of the international inbound market, particularly from China, there is optimism around future hotel performance.
Shakespeare Property Group has been active over the past month with the acquisition of Woolstore 1888 Hotel Sydney.
Richard Saab, Vice President of hospitality assets and investments at Shakespeare Property Group, said “We at Shakespeare Property Group are proud of what we have achieved over the past nine years of ownership, and what we have delivered for our fellow investors. The Pullman Cairns International (PCI) is a market leader in the luxury segment in Cairns and continues to serve as a top choice for domestic and international travellers who are looking for a great location with premium service and vast room space.
PCI lobby remains highly desirable for the opulence of its Colonial-Era style. Conveniently located within a 5-minute walk, PCI is well positioned to offer great service and unrivalled convenience to attendees of the Cairns Convention Centre. With the recovery of International inbound segment expected to reach pre-covid levels by end of 2024 to early 2025, incoming buyers would be able to benefit from all the upside that this segment can offer.”
