Sydney motel taken to market

​Sydney, 9 July 2014 – The 88 room Sleep Express Motel in Sydney’s Chullora is being taken to market.

CBRE Hotels’ Andrew Jackson, together with Ray Larkin of Manenti Quinlan & Associates, has been appointed to steer the sale of the freehold going concern offering.

The property is expected to generate strong interest from traditional moteliers, as well as development groups and offshore investors seeking a foothold into Sydney’s tightly held accommodation market.

The motel sits on a large 4,200sqm, high visibility site with highway frontage on one of Sydney’s busiest gateways, the Hume Highway.

The budget motel which is located within close proximity to Olympic Park, with easy access to the CBD, was built in 2000 to capitalize on the influx of tourists following the Sydney Olympic Games.

The three-storey property comprises 88 air-conditioned ensuite rooms, including 6 interconnecting rooms and has parking for 82 vehicles. The property also has a breakfast room, commercial kitchen and manager’s residence, plus plans for further expansion.

The property is currently owner operated under management and will be offered with vacant possession.

Mr Jackson commented; “I expect huge interest for this property. Sydney accommodation assets are in high demand and anything taken to market has generated unlimited interest and are selling at very strong prices.”

We sold the Victoria Court Hotel in Potts Point on a 7.3% yield and the Newport Mirage hotel on Sydney’s northern beaches has only just sold to an offshore group for a very strong price” he said.

“This property will hold broad appeal because of the significant landholding, the simplicity of this limited service budget operation, proximity to the CBD and the numerous opportunities to reposition the business and enhance profitability.”

“Opportunities for private investors to enter the Sydney hotel market are few and far between. Investors know that these assets have performed very strongly over the past decade; they are an easy to operate cash flow business and we expect them to continue to perform well in the future.”

“Sydney is considered to be perhaps the most desirable hotel market in the country. The consistent business demand and the fact that it is number one on the list of places to visit for tourists means that it has performed well in the past and will continue to do so.”

“This motel is well located to a huge range of demand generators and therefore draws from a range of markets to deliver consistently strong revenues”

“The property has been owner operated and not affiliated with any major chain so there exists a great opportunity to explore rebranding options and plug into a global marketing and distribution channel to drive the performance of this asset.”

The property is being offered for sale by expressions of interest closing on 21st August. For more information please contact Andrew Jackson on 0405 355 972.

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 2012 revenue).  The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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. About CBRE Group, Inc.