Sylvania hotel sells
JLL’s Hotels & Hospitality Group has announced the sale of the Crest Hotel, Sylvania NSW. Occupying a substantial 3744m² site as part of the Southgate Shopping Centre, this under-performing hotel also benefits from a 3am licence, 24 gaming machines and an excellent spread of revenue from all departments.
In 2013 JLL successfully divested the Flagstaff Hotel in Adelaide for $11.75 million for the Reserve Hotel Group.
These long time industry stakeholders again sought JLL to execute a strategy to optimise the unconditional sale of the Crest Hotel in the short term.
A process was implemented resulting in a highly competitive public tender with this desirable asset widely marketed to a full spectrum of potential bidders including hoteliers, retailers and developers.
JLL simultaneously generated offers to lease the hotel creating a risk-free passive income stream that facilitated bidding from investors and developers, who could then focus on site maximisation schemes and DAs.
The result….five bids representing all buyers groups and an unconditional sale for circa $19 million.
