Foreign buyers are snapping up hotels in Australia as the country's currency dips.
Case in point: The Rydges Tradewinds Cairns hotel has been sold for $34 million to a newly formed European-funded company called GA Group Australia, whose core business is in Dubai. It's its first hotel in Australia.
Company spokesman Mark Davie said it was considering “a substantial refurbishment” of the hotel to create a 5-6 star offering for the Cairns market, reports The Cairns Post.
The group's interest in buying in Cairns is based highly on STR results. The 12 months to January 2016 showed hotel occupancy rates in Cairns lifted 8.6 percent to 74.7 percent, rates by 5.9 percent to $125.87 and double-digit growth in revenue per available room, up 15.1 percent.
The off-market sale of the 246-room hotel was negotiated by CBRE Hotels.
The hotel was sold by Abacus Funds Management. The fund has two hotel assets left: Rydges Esplanade in Cairns and Novotel Twin Waters on the Sunshine Coast.