Iconic Noosa Reef Hotel changes hands

Iconic Noosa Reef Hotel changes hands

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.

Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Luxury developer Spyre Group gets green light for beachfront Coolangatta project

Luxury developer Spyre Group gets green light for beachfront Coolangatta project

The company behind luxury Gold Coast developments Elysian, Natura...

Hearing tech Audeara rises from fledgling startup to $21m ASX listing in six years

Hearing tech Audeara rises from fledgling startup to $21m ASX listing in six years

Six years ago, Audeara (ASX: AUA) was a start-up aiming to make h...

Australia orders 25 million COVID-19 vaccine doses from Moderna

Australia orders 25 million COVID-19 vaccine doses from Moderna

Biotechnology company Moderna (Nasdaq: MRNA) has entered into a n...

The pressure is on for Australia to accept the coronavirus really can spread in the air we breathe

The pressure is on for Australia to accept the coronavirus really can spread in the air we breathe

More than a year into the pandemic, the World Health Organization...