14 Dec 2022
Words Tony Raggatt Townsville Bulletin

Plenty of sales records broken, $27m of assets change hands

Sales records have been smashed in the hospitality sector in Townsville in the past 12 months, according to specialist accommodation property agency ResortBrokers.

It says more than $27m of assets have changed hands with another $10.5m worth of deals due to settle before Christmas.

The agency’s Townsville broker Des Fagg says the exceptional demand for property reaffirms the city’s growing clout as a tourism hub, making it an attractive prospect for investors.

The city’s leisure market is being advanced with the construction of the Morris Group’s new $88m five-star hotel Ardo, now well under way for a late 2023 opening, and the recent approval of a seven-level hotel and restaurant on The Strand.

ResortBrokers says around $500m worth of hospitality investments are planned.

Buyer inquiry for the first quarter of this financial year has been so strong they have hired a second broker, Glen Cummins, to assist Mr Fagg.

Among some of its deals are recent separate sales of management rights to Sanctuary on Flinders and Mariners North Holiday Apartments.

Sanctuary on Flinders is an inner-city 55-unit apartment complex. Its management rights include a manager’s office and a letting pool of around half the units.

“It’s an exciting time to invite in Townsville, and ResortBrokers is proud to be on the ground supporting buyers and sellers in the settlement of significant deals like Sanctuary on Flinders,” Mr Fagg said.

Those rights are understood to have sold for just under $900,000.

Apart from the Morris Group, one of the biggest hospitality investors in Townsville has been the Star Group led by Tully-born, Harvard-educated Steven Shoobridge.

He recently added The Avenues Tavern and the Centenary Hotel to his stable, paying a combined $14m for the properties, to add to other recent Townsville acquisitions including the Rydges Southbank Townsville Hotel and Convention Centre, Shamrock Hotel, Central Hotel and West End Hotel.