Local buyer secures The Sebel Launceston
A Tasmanian buyer has outbid national and international contenders to secure The Sebel Launceston 4.5-star CBD apartment hotel in a deal worth close to $10 million.
The boutique property was offered for sale for the first time since opening in 2005 through national specialist accommodation and hospitality property agency Resort Brokers Australia.
Described as the city’s finest hotel, The Sebel Launceston on historic Cornwall Square was sold by its original developer and owner of nine years Tasmanian Boutique Hotels P/L.
Resort Brokers Australia national sales manager Trudy Crooks says the hotel listing stirred up “plenty of excitement”, attracting 30 genuine enquiries.
“Within two weeks of listing, seven offers were lodged with us at the asking price of just under $10 million, including from Queensland, New South Wales, Victoria and Singapore.
“In the end, it was a Tasmanian buyer (undisclosed) who paid the list price for both components in a deal which, remarkably, took just 10 weeks from listing to settlement.”
Ms Crooks said Resort Brokers Australia was appointed because of its expertise in splitting properties into two components, freehold investment and lease, achieving a much higher total value than a sale in one line.
The sale of the freehold land and buildings component showed a 9 per cent return while the leasehold sold on a 26 per cent return, she said.
The Sebel Launceston, on the corner of St John and Williams streets, features 49 self-contained one and two bedroom suites, the popular Market Square Restaurant, two dedicated conference venues, a gymnasium, courtyard and large reception and lounge with open fire.
Designed by Launceston’s Artas architects, it features Tasmanian stone and timbers, showcases locally-commissioned art, and promotes local growers, producers and vineyards through its menus.
Resort Brokers Australia says, given the proudly local theme of the property, it was gratifying the hotel would continue in local hands at a time when Australian hotels were attracting strong demand from corporate and overseas interests.
“The buyer, a local investment company, has a background in tourism and hospitality, having previously owned motels and hotels in NSW and the ACT,” Ms Crooks said.
“The hotel will continue to operate as part of the growing Sebel portfolio, Accor’s upscale apartment hotel brand.
Latest trading figures show The Sebel Launceston achieved a very healthy occupancy rate of 79.3 per cent for 2013-14, compared to the Tasmanian average of 58.5 per cent for the year (ABS, Hotels Motels & Serviced Apartments 15+ rooms).
Occupying a 3651m²site, the eight-storey mixed-use building also incorporates 35 strata titled residential apartments on the upper three levels, which are individually owned and were not part of the sale.
“The developers had also originally strata titled the 49 hotel apartments, so this gives the new owner further opportunity should they wish to offer these to investors at some time in the future,” Ms Crooks said.
Accor Pacific Chief Operating Officer, Simon McGrath, said The Sebel Launceston was Accor’s flagship address in Tasmania. “Accor welcomes the opportunity to build on our track record and drive momentum for The Sebel Launceston as one of Tasmania’s most popular accommodation options.
“We congratulate the property’s new owners and look forward to working with them to maintain its reputation as one of Launceston’s most elegant hotels, with a focus on meeting the needs of our guests.”
