Canberra motel exchanges hands for $14.2 million

A motel in the Canberra suburb of Ainslie has exchanged hands in an off-market deal through CBRE Hotels.

The Best Western Tall Trees Motel at 21 Stephen Street was bought by Elanor Funds Management for $14,200,000 from Tall Trees Motel Pty Limited. 

The 79-room motel includes a bistro restaurant, manager's apartment and 71 onsite car parking spaces. It is owner operated, under management – with a franchise agreement in place with Best Western. The property has a site area of 5,797 sqm.

The passing yield was 8.2 percent.

Canberra posted strong growth across all major hotel indicators for the year to March 2016, indicating that the market has managed to cope with the increases in supply, according to CBRE. With no new supply scheduled to come online until mid-2017, Canberra should experience further increases in occupancy leading to rising hotel performance, according to the media release.