Cairns hits spring with a new wave of hotel investment appetite

​Cairns, 11 August 2015 – The ibis Styles Cairns and the Cairns Student Lodge are to be offered for sale in separate International Expressions of Interest campaigns.

CBRE’s Wayne Bunz and Danny Betros have been exclusively appointed to sell both properties amid overwhelming interest from hoteliers and investors seeking to secure a foothold in the Cairns market.

Mr Bunz, Senior Director of CBRE Hotels, said the highly sought after and tightly held Cairns hotel market had benefitted from a strong rebound, with record occupancy levels underpinning buyer demand for hotel investment opportunities.

This has been highlighted by a series of recent transactions including Pullman Cairns International, the Pacific Hotel Cairns and The Hotel Cairns – the sale of which was negotiated through CBRE.

Mr Bunz said The Hotel Cairns campaign had attracted significant interest from domestic and overseas investors, with an unprecedented volume of Asian capital currently targeting opportunities in Australia.

“Asian buyers who understand and respect hotel assets as an alternate asset class are reaping the rewards with strong hotel performance off the back of rising tourism levels boosted by a softening Australian dollar,” Mr Bunz said.

In the case of both ibis Styles Cairns and the Cairns Student Lodge.

Mr Bunz added; “The ability to obtain vacant possession, coupled with exceptional locations amongst key demand generators and the fundamentals of the Cairns accommodation market is expected to underpin buyer interest in these assets.”

The ibis Styles Cairns features 75 well-appointed rooms and extensive facilities, including a restaurant, bar, meeting room, tour desk, swimming pool and BBQ area. The hotel has a prominent location on Florence Street, close to the Cairns Esplanade and directly opposite the new proposed Cairns Civic Theatre, the 24hr Medical Centre/Day Surgery and the $35m Cairns Aquarium which is currently under construction.

Mr Bunz said the hotel trades exceptionally well and had this year benefitted from a $250,000 refurbishment. It is being sold with vacant possession in an Expression of Interest campaign closing 23 September 2015 at 1:00pm AEST.

Cairns Student Lodge is a 76 unit, 231 bed, dedicated student accommodation complex with extensive facilities, including a dining area, swimming pool, conferencing facilities and entertainment and BBQ areas. The property is located opposite James Cook University on a large 11,824sqm freehold site and offers vacant possession.

The asset benefits from strong trading performance and upside potential via refurbishment, re-branding and/or repositioning of the asset. The Expressions of Interest campaign for Cairns Student Lodge closes 16 September 2015 at 1:00pm AEST.

CBRE Cairns Managing Director Danny Betros noted; “Cairns is currently witnessing a strong rebound in international and domestic tourist arrival numbers as a result of increased airline capacity into the region, especially from Asia. As a result, the hotel market has emerged as one the best performers in the country, exceeding market expectations and recording a strong recovery from a low base.”

This is the highlighted by the fact that Cairns had the highest RevPAR growth (10.9%) in Australia for the year ending June 2015 and improved occupancy levels.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue).  The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.