The Grand Mercure Hobart Central Apartments in Tasmania has been acquired by RACT with equity partner Victoria’s RACV.
It is RACT’s first foray into the accommodation sector but RACV has operations in Victoria and Queensland.
Grand Mercure Hobart Central Apartments went into receivership in January last year but has remained in operation.
Sue Blake, executive general manager RACV Club and Resorts, said the 4½-star, nine-storey development, which opened in April 2012, will be renamed the RACV/RACT Hobart Apartment Hotel.
Ms Blake said RACV together with RACT purchased the property via sale by receiver and operation of the new RACV/RACT Hobart Apartment Hotel operations will commence in September 2013.
RACT chief executive Harvey Lennon said, “RACT has been working with RACV for some time looking for a suitable opportunity to extend these operations to Hobart, as the iconic holiday destination we know it to be.”
Under the new joint venture arrangement, the hotel will be operated by the RACV, which has eight other club and resort operations in Victoria and Queensland.
“This property is a great fit with what RACV’s 2.1 million members have come to expect — quality, comfortable, family friendly, affordable, and in a great location,” Mr Lennon said.
RACT’s 184,000 members will directly benefit from a 25% member discount off the non-member rate.
The hotel comprises 125 rooms including one and two-bedroom apartments and studios, a restaurant, several conference and event spaces, on-site parking and a gym.