JLL is reportedly marketing the Mercure & Ibis Styles Grosvenor Hotel on North Terrace in downtown Adelaide, Australia. The property is being offered for sale by way of an Expression of Interest campaign closing at 1 pm (AEST) on Wednesday, Oct. 27.
This 245-guestroom hotel is being offered with in-place AccorHotels management or with vacant possession, which could provide strong cash flow and underlying redevelopment potential. Mark Durran, MD at JLL Hotels & Hospitality, said in a statement, “The property occupies a freehold site of about 3,794 square meters offering an array of potential redevelopment options. With recent improvement in Adelaide’s hotel trading performance and the hotel’s central location, it is well-positioned to capitalize on the future momentum of the city’s ongoing growth as the local tourism market goes from strength to strength.”
Recently, the city of Adelaide has recorded strong trading performance, with occupancy recorded at YTD July 2017 reaching 78.1 percent. According to survey, RevPAR at YTD July increased by 5.4 percent from the previous year.
The city is also benefitting from improved flight connectivity as Cathay Pacific recommences its fifth weekly service from Hong Kong. China Southern Airlines also added two scheduled flights to Guangzhou, further enhancing the airport’s flight network. Adelaide Airport now supports non-stop connections to over 300 destinations around the globe.
“The city of Adelaide is rapidly transforming, with a large focus along North Terrace, and with direct investment into the city totaling more than AUD 3.8 billion, demand generators receiving capital injections, such as the Adelaide Oval, Festival Centre Carpark & Plaza, Biomedical Precinct, and both the University of Adelaide and University of South Australia’s campuses, are a testament to the city’s bright future,” Duran added. In particular, the Royal Adelaide Hospital has recently opened its doors at a cost of AUD 2.3 billion. Meanwhile, the Adelaide Convention Centre has undergone a recent expansion in two phases at the cost of AUD 397 million, including the addition of two new buildings and Plenary Hall. The expanded convention center is expected to introduce an additional AUD 1.92 billion into South Australia’s economy over the next 25 years.