The Mantra MacArthur hotel on Canberra’s Northbourne Avenue has hit the market less than two years since it’s opening heralded the start of a hotel building boom in the nation’s capital.
The former office block underwent a $19 million transformation in 2017 into a four-star, ten-storey hotel comprises 176 guest rooms, restaurant and bar, conference, gym, shops and 62 underground car parking spaces.
Located adjacent to the MacArthur light rail stop, it is currently leased to Mantra Group and is the Midtown Parking Station for Canberra commuters.
The latest CBRE report shows the capital’s accommodation sector to be a standout performer nationally, with Canberra experiencing revenue per available room growth of 4.4 percent in 2018 – against a national figure of 1.2 percent growth.
“With excellent real estate fundamentals, certainty of income and several value-add opportunities, the sale of the Mantra MacArthur and Midtown Parking Station presents a coveted investment opportunity in one of Australia’s best performing markets,” said Andrew Langsford, vice president of listing agent JLL Hotels and Hospitality Group.
With the recent introduction of new short-haul international flights to Canberra Airport, the city is expected to see continued growth.
According to the 2018/19 state budget, Canberra is on track to achieve $2.5 billion in overnight visitor expenditure per year by 2020.
“Canberra’s outlook for continued economic growth, together with the ability to acquire an asset with diversified income streams in a strategic location amongst Canberra’s best demand drivers will attract strong interest from both domestic and international investors,” said Michael Simpson, managing director of co-lister Savills Hotels.
The property is leased to Mantra Group for 15 years, with two five-year options on lease renewal, with an estimated 2019 income of around $3 million.
Whole new Kafnu
Kafnu Alexandria, described by owners Next Story Group as “genre defining”, will open in Sydney on March 1.
A combination of shared work space, boutique hotel and social community, Kafnu properties are strategically located and designed to “foster co-creation, co-exploration and co-innovation” within busy urban environments.
The Alexandria hotel is the fourth Kafnu alongside properties in Hong Kong, Taipei and Bengaluru.
Multiple workspace configurations, purpose-built media production and podcast studios are all available to members, as are 16 “luxuriously furnished” guest rooms, a bespoke gin bar, and a virtual fitness studio.
Simon Hall, general manager of Kafnu Alexandria said: “What sets Kafnu Alexandria apart is our positive community culture, which encourages members to share experiences, learn from one another, work together and inspire one another to achieve even more.
“We are building a vibrant community of hyphenates, entrepreneurs and trailblazers, and we will support their success through bespoke activities, including talks, workshops, seminars, and industry-specific events that facilitate networking and collaboration.”
And finally, just days after it hit the market, Manly’s iconic Hotel Steyne is set to sell for around $80 million.
HTL Property, the agents appointed to sell the pub affectionately as The Drain, showed a number of Sydney-based hoteliers through the property during the week, including celebrity publican Justin Hemmes.
Andrew Jolliffe, HTL Property Asia Pacific managing director, said the property was garnering healthy interest from interstate and overseas buyers as well as local prospects.