06 Mar 2024
Words
The Hotel Conversation
Brisbane city-fringe Spring Hill Terraces for sale prime for development says ResortBrokers
The freehold going concern of Spring Hill Terraces Motel & Apartments for sale at $8.9 million by Trudy Crooks, ResortBrokers Managing Director, with fellow Director Alex Cook, as a prime development opportunity in the fashionable inner Brisbane suburb which has seen several older motels upgraded to premium and luxury hotels.
Occupying a large inner-city site of 1,672 sqm along Water, Warry and Kennigo streets only 1.5 km from the CBD and a few hundred metres from Fortitude Valley, the 28-room Spring Hill Terraces is currently operating as a budget motel.
“The motel is one of the few older accommodation properties in a prime city-fringe Brisbane location that has not been snapped up and repositioned by investors,” says Trudy Crooks, ResortBrokers Managing Director, who is handling the sale with fellow Director Alex Cook. “The large lot size is also extremely rare for inner Brisbane, adding to this freehold asset’s incredible development potential.”
“Spring Hill is particularly attractive to investors. Its proximity to the city, Valley and major business venues like the Royal International Convention Centre at the Brisbane Showgrounds as well as Victoria Park, make it a highly attractive location for an accommodation business, particularly one that’s positioned for corporate trade and the high-end leisure market.”
Ms Crooks says the strength of inner-city Brisbane’s accommodation market is reflected in the Queensland state capital’s occupancy and rates.
“Occupancy is now at par with pre-Covid levels at around 73% and ADRs are up 47% on pre-Covid at $235. We only see it increasing from here based on simple supply and demand. There’s already a scarcity of existing accommodation assets in inner Brisbane in a market that’s traditionally very tightly held, and there are significant barriers to entry for new supply giving the ongoing building cost crisis.”
Ms Crooks says several upgraded Spring Hill hotels have justified their capital outlays to reposition themselves as premium and luxury accommodation.
“Upgrades are more affordable in the current market than a comprehensive site redevelopment; however, that’s still an attractive option for investors. A quarter of Spring Hill Terraces’ apartments are spacious two-storey townhouses, which are fully self-contained with kitchens, while its three studio apartments come with kitchenettes. These are perfect for lengthy corporate stays given the CBD is within easy reach.”
Ms Crooks says inner Brisbane will benefit from the Queensland state capital’s ongoing population boom as well as major infrastructure projects in the run up to the 2032 Summer Olympics.
“Weekly migration to South East Queensland from southern states is over 1,700 people a week,” she says.
“While the Gabba as the main Olympic venue is currently under review, there’s no doubt inner-city Brisbane will experience a public and private sector construction boom as we approach 2032.
“If, as has been reported, Victoria Park takes over from the Gabba as the main Olympics site, Spring Hill Terraces will be a major beneficiary. Victoria Park is a five-minute walk from Spring Hill Terraces. Walk down Warry St and you’re there.”
Trudy Crooks, Managing Director
0477 882 210
trudy@resortbrokers.com.au
Alex Cook, Director
0467 600 610
alex@resortbrokers.com.au
