Hotel and Hospitality Assets are Hot Property
May 26 2021
Growing demand for homegrown hospitality
Over the past six months Kollosche Commercial has been privileged to market a selection of accommodation and hospitality assets.
Selling multiple properties in the same sector has provided us with valuable insights and an in-depth understanding on what’s driving the demand.
Properties we have sold, and are currently marketing, in this category include:
We believe there are two main reasons why interest in this asset class is growing.
Firstly, many of these assets were built 20-plus years ago and have been subject to Town Planning amendments, meaning their land has a higher intrinsic value as a development site.
Properties along the Gold Coast Highway are a good example of this. These assets provide a strong holding income during the design, approval and pre-sale stage of a development. Unlike most commercial properties, however, they are not subject to long leases which often include demolition clauses. Those clauses may include relocation costs or pay out to the current tenant.
Secondly, there is an increased demand for accommodation venues which can host functions and events onsite, such as:
Restrictions preventing normal overseas travel have exposed a huge gap in the market for venues and accommodation facilities in South East Queensland.
We are speaking to buyers who believe that:
South East Queensland has a very good opportunity to capitalise on the broad based increase in local travel.
Over the next few months large and boutique operators will be looking to establish venues in time for the 2021 peak summer season.
We encourage those who have properties within this sector to make the most of the opportunities ahead. Reach out to Adam Grbcic or Tony Grbcic from our Commercial team to discuss the best way to leverage those assets.