RACT and RACV buy Grand Mercure Hobart Central Apartments

Tasmanian motoring group the RACT has ‘’taken an exciting first step’’ into the tourism and leisure market. It’s teamed up with the Victorian RACV to buy the Grand Mercure Hobart Central Apartments for about $25 million.

RACT chief executive Harvey Lennon said the four and a half star, nine storey development which opened in 2012, would be renamed the RACT/RACV Hobart Apartment Hotel.

The Collins Street hotel is behind the historic Hadleys Hotel, also expected to change hands to new owners for about $10 million.

Receiver KordaMentha is selling the properties after their owner, the Doherty Group, came under pressure from lenders.

Under the new joint venture arrangement, the hotel will be operated by the RACV after the new hotel opens in September.

Tasmania is a popular destination for Victorians, who according to Tourism Tasmania, make 320,000 visits to Tasmania a year.

Some seven out of 10 of these visits are for a holiday and 77% incorporate Hobart.

RACT's 184,000 members will directly benefit from a 25% discount off the non-member rate.

The hotel comprises 125 rooms including one and two-bedroom apartments and studios, a restaurant, several conference and event spaces, on-site parking and a gym