ACCOMMODATION business and property owners in Far North Queensland are taking advantage of buoyant market conditions to sell or trade up, say industry experts.
The Cairns office of specialist commercial agency Resort Brokers Australia has settled 18 FNQ accommodation and hospitality property and business sales in the past year, said national sales manager Trudy Crooks.
“Robust tourism growth is fuelling opportunities across the region, resulting in high levels of activity and strong demand for accommodation operations,” she said.
“Our local office has transacted more than $22.5 million worth of property in 12 months.”
In response, Resort Brokers Australia has recruited North Queensland business consultant and broker Kirsten Lowis to join local agent Chenoa Daniel in servicing the tropical north.
Ms Lowis, born and raised in the region, is a qualified business valuer and experienced broker who previously established and recently sold a Townsville-based brokerage.
She has relocated to Cairns and will handle motel, management rights and caravan park sales.
Ms Crooks said the Cairns and Port Douglas visitor economy had performed strongly over the past two years, boosting accommodation trading figures and investment demand.
The latest Dransfield Hotel Futures 2018 industry report showed, while occupancy rates increased 2.3 per cent in FY2017, room rates had risen by 10 per cent to $156.65.
“Even more impressive is that revenue per available room (RevPAR) was up 13.4 per cent, leading the country in year-on-year growth and outperforming already robust prior expectations,” she said.
“This has produced excellent trading figures on which to sell accommodation businesses, while the outlook for continued growth points to good upside for incoming investors.
“Preliminary data for this financial year indicates robust rate-driven growth has continued on the back of improving occupancy levels,” Ms Crooks said.
Resort Brokers Australia’s recent sales have ranged from Cooktown’s historic ‘Top Pub’ the 1874 Cooktown Hotel, to major apartment resorts and motels from Port Douglas to Cairns.
Among the largest have been the management rights at Bay Villas Resort, Port Douglas, Coral Sands Beachfront Resort and Blue Lagoon Resort at Trinity Beach, and the Reef Palms Motel Apartments leasehold in Cairns.
Settled just this month by Ms Daniel have been sales of the management rights to Saltwater Luxury Apartments in Port Douglas and the Clifton Waters permanent residential apartment complex at Clifton Beach.
“These dedicated local industry professionals will be working together to serve the needs of accommodation business owners and investors across Far North Queensland as we expect demand to drive further opportunity and growth,” Ms Crooks said.