A prominent Sydney-based consortium has listed the Mantra Terrace Hotel for sale amid ongoing interest in Brisbane investment opportunities.
CBRE Hotels’ Wayne Bunz and Hayley Manvell have been exclusively appointed to steer the sale following a series of Brisbane hotel transactions, including the Ibis Budget Windsor, Pacific Hotel Brisbane, The Incholm Hotel by Ovolo, Sofitel Brisbane, Quest Chermside, Oakwood Hotel and The Fantauzzo, all of which were transacted by CBRE.
The Mantra Terrace Hotel underwent a comprehensive refurbishment in 2021 and features 85 guest rooms and suites, a restaurant and bar and reception.
It has been listed for sale on behalf of a Sydney-based consortium including 8Hotels’ Paul Fischmann, Capit.el Group’s Eduard Litver and Jonathan Hasson.
The hotel is strategically located near the Brisbane CBD, close to tourism, medical and corporate demand drivers, including the Brisbane Arena development. The Brisbane Arena will feature a 17,000- seat entertainment venue, which will host Olympic events but will also extend far beyond this to attract a greater variety of entertainment and international sporting events to the city.
CBRE Hotels’ National Director Wayne Bunz said, “Brisbane is currently one of the most in demand hotel investment markets in Australia, with domestic demand for holiday and business travel outperforming other markets, with all key performance indicators fully recovered to pre-pandemic levels. Occupancy is up 8% year-on-year to 74%, Average Daily Rate (ADR) has increased 7% year-on-year to $229, and Revenue per Available Room (RevPAR) stands at $168, up 15% from the previous year and 47% above 2019 levels.”
Mr Bunz noted, “The Mantra Terrace Hotel Brisbane offers significant potential, currently operating under a hotel management agreement with Accor which expires at the end of this fiscal year. This opens up the opportunity for owner-operator and investors aligned with other brands to reposition or rebrand to a boutique lifestyle offering post the renovation to capitalise on the corresponding ADR for this type of hotel offering and the ancillary revenue from operating the restaurant.”
“We expect the campaign will garner substantial local and international interest, presenting a compelling investment opportunity for an operator to establish a presence in Australia’s premier hotel market and enhance their brand visibility on the global stage in anticipation of the Brisbane Olympic Games.”
CBRE Hotels’ Director Hayley Manvell said, “There is a true scarcity of opportunities to enter Brisbane’s tightly held accommodation market, which is unlikely to change any time soon, given that rising construction costs are making new builds unfeasible. Brisbane limited supply pipeline is not able to keep up with the increasing demand growth which is resulting in strong financial performance for existing assets”.
Ms Manvell added, “The infrastructure development catalysed by the upcoming Brisbane 2032 Olympic & Paralympic Games is a monumental undertaking that aims to leave a lasting legacy for Brisbane and will cement the city as Australia’s new event’s capital. This hotel is close to one of the key Olympic venues, Brisbane Arena, which will create a world class facility for premium live events and help Brisbane attract a greater variety of entertainment and international sporting events”.
The Mantra Terrace Hotel is offered for sale by way of an Expressions of Interest campaign closing Thursday October 3 (if not sold prior).
