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A Sunshine Coast icon has changed hands after the Noosa Reef Hotel on Noosa Hill was sold to a local private investor for $13.9 million.
The hotel on 19 Noosa Drive, which is under a lease to Woolworths Group (ASX: WOW) subsidiary Endeavour Group until 2029, was sold at a public auction arranged by JLL's joint heads of retail investments, Jacob Swan and Sam Hatcher.
Swan described the landmark as a rare offering to the market.
"The Noosa Reef Hotel sits on an expansive 5,069sqm site at the top of the famous Noosa Hill, providing stunningly expansive views out over Noosa Main Beach and the North Shore," Swan said.
"Given the strength of the tenant covenant and the hotel's blue-ribbon location, we received very strong investor response towards the property. Investor sentiment for long-lease assets has never been stronger, fueled by a positive interest rate environment and demand for essential service operations.
"The Noosa local economy has been one of the strongest in the country over the last 12 months, with record domestic tourism from both local within Queensland, and from the southern states."
He said the hotel was bound by a long-term, net lease to Endeavour Group with initial expiry in 2029 and four 10-year options, which provides the buyer with strong income certainty and annual fixed growth. The property is currently returning a net income of approximately $692,515.
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