In Toowong, an inner suburb of Brisbane, Australia, locally based Asian investors have purchased the 51-room Jephson Hotel for $15.8 million, or $310,000 per room. The hotel is about three miles from Brisbane’s inner city district.
“Since opening in 2011, the property has performed exceptionally well,” Colliers International National Director Hotels Neil Scanlan, who marketed the property, said. “As a result, the Expression of Interest campaign conducted achieved significant interest from owner operators and hotel investors…This is a great result as it shows that there are still astute investors looking to capture the potential future growth of the Brisbane hotel market.”
Scanlan expects that the next several years will “remain strong” for the Brisbane hotel market thanks to “significant infrastructure projects” planned for the City, including the $5.4-billion Cross River Rail and $3-billion Queen’s Wharf development.
Earlier this year, we noted that international visitor numbers in Brisbane and southeast Queensland as a whole are also expected to rise as the region prepares for major events, including the Commonwealth Games on the Gold Coast.
In May, we reported that investors are seeking Australian hotels, but there are few midscale properties available. The Radisson Sydney at Darling Harbour was taken off the market by Ausbao even though was expected to attract more than $40 million.