Australia continues to be hotbed for development, transactions

The Rydges Tradewinds Cairns
(Booking.com)

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. 

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


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 company's main markets are still substantially affected by the measures rolled out to combat the COVID-19 health crisis.

Revenue per available room and occupancy increased over Q2, but uncertainty around the industry’s recovery remains.

The integration aims to provide hoteliers with seamless and complete visibility over group, catering and event sales performance activity.