Mackay Grande Suites hotel in central Queensland to hit the market
Mackay Grande Suites, a 4.5 star hotel in central Queensland, is set to come to the market through CBRE Hotels.
The hotel has been marketed by several agencies over the past three years but now the ownership has been placed into administration.
The companies, directed by John Cowley, went into administration earlier this year and were also listed earlier this year with expectations of $30 million, according to the Northern Star.
Mackay Grande Suites has a site area of 2,029 sqm, and the seven-story building comprises 91 rooms, a bar and bistro, swimming pool, 45 electronic gaming machines and other amenities.
It has internal access to the adjoining Centrepoint Shopping Centre.
According to the brochure, the hotel has a strong cash-flow business with diverse income streams and is being offered with vacant possession.
Although the decline of the resource sector in 2012/13 hit the economies of Mackay, Gladstone and Emerald, there has been renewed investor interest and activity in the Mackay region due to the recent announcement of the proposed $22 billion Adani Carmichael project, the approval of the $555 million Mackay Ring Road infrastructure project and the resurgence in major industries including agriculture and mining, says CBRE.
Added to that, in 2016, sugar prices surged to the highest level in four years, while the mining sector also recovered with mining services companies benefiting from increased production due to higher coal prices.
Tourism in the region has also risen off the back of extensive tourism campaigns and the record low Australian dollar.
All these factors are expected to drive the recovery in the Mackay economy in the short to medium term, according to CBRE, and the acquisition of the Mackay Grande Suites could be counter cyclical opportunity.
The agency also says that “it is not unlikely that the asset will be sold below replacement value”.
The Mackay Grande Suites and associated properties are being marketed by CBRE Hotels’ Wayne Bunz and Paul Fraser under instruction from voluntary administrators, Sam Freeman and Justin Walsh of Ernst & Young.
