26 Jul 2023
Words
John Miller AccomProperties
Quest Townsville on Eyre freehold on sale with ResortBrokers
The passive freehold of Townsville’s only Quest-branded property is being marketed by ResortBrokers Nathan Eades and Glen Cummins via an expressions of interest campaign.
“The freehold of Quest Townsville on Eyre is an outstanding opportunity to own a blue-chip freehold that’s part of Australia’s most successful hotel franchise in a rapidly developing regional city,” says ResortBrokers’ Nathan Eades.
With a yearly rent of $1,495,000, Quest Townsville on Eyre is located only one block back from The Strand, Townsville’s beachfront promenade and main entertainment and dining precinct.
Comprising 85 serviced apartment-style rooms with full-sized kitchen facilities, Quest Townsville on Eyre offers a wide array of room configurations ranging from studios to three-bedroom apartments. Extensive business facilitates, including a spacious conference centre accommodating up to 80 delegates, help to attract corporate trade.
The incoming owner will take over the freehold with the stability of having a Quest franchisee tenant in place. The franchisee has a 10-year lease that expires in March 2027 with three further five-year options to renew that conceivably extends the lease to 2042.
Quest Townsville on Eyre is located in North Ward, Townsville’s most prestigious suburb boasting the highest priced houses and best schools. Located less than 0.5 km from The Strand, the hotel is within walking distance of all of Townsville’s hotspots, including The Ville Resort-Casino.
The hotel has a restaurant and bar that seats up to 200. This is currently not being operated and does not fall under the tenant lease. The purchaser could lease this out thereby creating an additional rental stream.
An operator could provide additional services to the hotel such as room service. The kitchen is of large scale and fully fitted out with commercial equipment, including refrigeration, preparation and cooking facilities back of house.
Quest Townsville on Eyre enjoys the benefit of belonging to Quest Apartment Hotels, Australia's leading apartment hotel brand and a member of the largest serviced apartment network in the world, The Ascott Limited.
“We expect a great deal of interest in this offering,” says ResortBrokers’ Managing Director, Trudy Crooks. “Not only is this an exceptional freehold asset but we’re seeing a huge amount of interest in regional accommodation assets as investors chase higher returns than metropolitan areas. We’ve seen a huge influx of new money in regional accommodation in recent times from both small-scale and large-scale investors. Add to this that accommodation assets typically have higher yields overall compared to many other property types.”
View listing here.
