02 Aug 2023
Words
Daniel Shirkie Townsville Bulletin
Quest for new owner
The longstanding hotel and apartment block, which sits just a street back from The Strand on Leichhardt Street, is taking expressions of interest now through ResortBrokers.
The passive freehold comes with the added stability of having a Quest franchisee tenancy already in place, with a 10-year lease that runs until March 2027, and the option to bolster it further through three five-year tenancy periods until 2042.
ResortBrokers’ broker Nathan Eades described the property as a blue chip opportunity for interested investors.
“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,” Mr Eades said.
The property, which boasts 85-apartment style rooms with fully-featured kitchens, is the only building in Townsville that bears the Quest branding since Quest on Palmer Street became Aligned Corporate Residences.
The building also features conference centres and other accommodation options, as well as a restaurant and bar that is not currently being operated by Quest, freeing it up as another revenue source.
ResortBrokers’ managing Director Trudy Crooks said the organisation was expecting a huge amount of interest in the opportunity.
“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,” Ms Crooks said.
“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.”
The property has a yearly rent of $1,495,000, but hasn’t been given a clear estimated value due to the expressions of interest campaign.
View listing here.
