Two Mercure Hotels in regional Victoria listed for $11 million receivership sale

Receivers from KPMG have listed the Mercure Hotel Horsham and the Mercure Hotel Bairnsdale for sale.

The two hotels, both built in 2009, are listed for sale either jointly or separately with expectations around $11 million.

The Mercure Hotel Horsham is located at 118 Baillie Street in Horsham, around 300km north-west of Melbourne and 426km south-east of Adelaide.

The 52-room hotel stands on a 3,900 square metre site and includes function rooms and restaurant-bar facilities.

The 51-room Mercure Hotel Bairnsdale stands on a 3,515 square metre site located at 355 Main Street in Bairnsdale, around  280km east of Melbourne in the East Gippsland region. It included manager’s accommodation, a gym, a restaurant and bar.

Colliers International’s Jeremy Gruzewski and Hamish Burgess have been appointed by the receivers and managers to sell the freehold going concern in both hotels by expressions of interest closing April 19.

Gruzewski says both hotels are fully equipped and operational.

The two hotels were listed for sale following two companies, Bairnsdale Property Pty Ltd and Horsham International Property Pty Ltd owned by hotelier and developer William Berry Thompson, being placed into administration earlier this year, Fairfax Media reported.

“The Mercure Hotel Horsham benefits from tourist visitors and a strong corporate clientele who are attracted to the near-new hotel facilities and accommodation,” says Burgess.

“Horsham and its surrounding area is known for its dynamic arts community, well known regional golf club, fishing in the Wimmera River and abundance of scenic bushland, mountains and waterways. 

“The area is also supported by two nearby wineries, Barangaroo Boutique Wines and Norton Estate Wines, which are located approximately 10 minutes south-west of Horsham. 

He says the Mercure Hotel Bairnsdale derives strong patronage from both corporate clientele and tourists.

“Bairnsdale is the largest city in the East Gippsland region and is situated on the Mitchell River which flows into the extensive Gippsland Lakes system. 

“While the town is known as an attractive tourist destination, the majority of the Mercure Hotel guests are corporate visitors from Melbourne, the greater Gippsland area and Southern New South Wales," he says.