Australia continues to be hotbed for development, transactions

The Rydges Tradewinds Cairns

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. 

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

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.

Suggested Articles

The new Minister of Tourism for the Republic of Cyprus has key insights into the island's growing appeal.

The Venetian Macao, The Parisian Macao and The Londoner Hotel will all become InterContinental Alliance Resorts.

Millennial and Gen Z travel decisions are colored by influencers and innovation and today’s hoteliers are wrangling both in pursuit of future business.