Rockhampton hotel sells for millions to Chinese investors
A SLICE of Rockhampton's tourism and hospitality industry, Travelodge, has been snapped up by a private Chinese investment group for $6.5 million.
This purchase is the group's first purchase in the Queensland hotel market.
CBRE Hotels' Senior Negotiator Hayley Manvell and Wayne Bunx sold the hotel on behalf of the Tucker Box Hotel Trust, with the asset traded at a yield of 8.68 per cent.
After a five week expression of interest campaign, Ms Manvell was "blown away” by the amount of interest it received.
By the end of the campaign, the "hotly contested” property was "pretty well under contract”.
"The asset attracted exceptionally strong interest, with multiple offers received in the first week of the campaign,” Ms Manvell said.
"The buyer was looking for a freehold asset and he has other assets and was probably interested most of all by the Rockhampton area and the growth he's seeing for its future.”
After the private buyer was priced out of southern markets, he cast his eyes to Rockhampton and saw better investment opportunities.
"He saw it as a good countercyclical investment,” Ms Manvwell said.
"He has an opinion that Rockhampton's economy has a lot of growth to come.
"A stock shortage is helping to draw buyer attention to Queensland opportunities as investors are priced out of southern markets.
"Investors are seeking to capitalise on the Sunshine State's strong tourism fundamentals, and we can expect to see more transactions taking place along the Queensland coast throughout 2019.”
The buyer is looking to invest in more Queensland properties in the future.
There are no changes or upgrades to the running of the hotel and it will continue to be operated by TFR Hotels under the Travelodge brand.
The four star hotel, located in the CBD, features 74 rooms and extensive facilities including four conference and meeting rooms, two food and beverage venues, a swimming pool, a gymnasium and parking.