Perth’s hotel market attracts global investors in major transactions
Two renowned Perth hotels, the Great Eastern Motor Lodge and Flag Motor Lodge sold
JLL has successfully facilitated the sale of two prominent hotels in Perth, marking a significant transaction in the city’s burgeoning hotel market. Andrew Langsford, Senior Vice President at JLL Hotels & Hospitality Group, and Sean Flynn, Senior Director of JLL Capital Markets, WA, managed the sales process.
Langsford noted: “The sale involves two well-established accommodation assets held by family interests for over 30 years, offering dominant land holdings. The strategic locations between Perth’s CBD and the Airport, as well as their proximity to major attractions, proved highly desirable for investors.”
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The Great Eastern Motor Lodge, situated on an expansive 11,892 sqm freehold site, features 198 apartments across various offerings. Singapore’s Hiap Hoe Limited acquired the property for $40 million, equivalent to just over $200,000 per room. Hiap Hoe highlighted the property’s convenient transport connections and its status as a focal point for the inner-city suburb of Rivervale. The hotel presents an appealing investment opportunity with high occupancy levels, enhancing Hiap Hoe’s recurrent income streams.
The Flag Motor Lodge, occupying approximately 9,865 sqm of freehold land, includes 116 rooms, a restaurant, a swimming pool, and generous parking. A first-time investor in the Australian hotel market from the United States purchased the property for $17 million, or $147,000 per room.
Flynn commented “The strong interest experienced during the sales campaign highlights the attractiveness of the overall Perth market and the growing confidence in the Western Australian economy.
“Given the current housing crisis gripping the state, the focus of interest was very broad including build-to-rent operators, and even the state government”.
“We had a diverse range of investors vying for these properties, with hotel investors ultimately securing the successful bids,” noted Mr Langsford. “The thriving Perth hotel market is evident from the YTD January 2024 STR results, which indicate a remarkable 40 percent increase in Revenue Per Available Room (RevPAR) compared to pre-Covid 2019 numbers.”
JLL has been at the forefront of the Western Australian market, completing several successful deals over the past 14 months, including the Great Eastern Motor Lodge, Seasons of Perth, Geraldton Motor Inn, and more recently the Rendezvous Perth Central. The firm anticipates announcing more exciting transactions in the coming months.
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