In Australia, Prime Hotels is looking to get about $60 million for two hotels in two states.
CBRE is managing the sale of The Rydges South Park Adelaide in South Australia and The Reef House Palm Cove MGallery in Queensland. The two assets can be acquired as a combined package or individually.
Prime Hotels has owned the Adelaide property for more than 20 years, while the Palm Cove asset—purchased in 2011—will be sold after extensive renovations.
CBRE national hotels director Rob Cross told The Australian that the two hotels are very different properties. “The Rydges South Park Adelaide is one of the best-performing hotels in the city and Palm Cove is one of the sexiest holiday destinations at the moment,” he said.
The South Park Adelaide—“one of the best workhorse hotels in the city with a huge corporate intake each year,” according to Cross—is expected to sell for around $30 million. The Reef House, meanwhile, is the only "one-line" hotel property left on the Palm Cove esplanade. The other hotels all "strata-titled," a form of property-ownership popular in Australia that divides real estate into individual lots and common property.
“With substantial refurbishments and 69 rooms ready to go, this will be very attractive to investors,” Cross said of the Queensland hotel.