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

Looking for a credit or charge card that’s built for your business? Try American Express
Partner Content
A good credit card should work for you, not against you, and let you and your business ...
American Express
Advertisement

Related Stories

‘One-eyed focus on profit’: The Star’s Queensland licence now also under threat

‘One-eyed focus on profit’: The Star’s Queensland licence now also under threat

The Star Entertainment Group (ASX: SGR) has been slapped with ...

ACCC cracks down on greenwashing, fake online reviews

ACCC cracks down on greenwashing, fake online reviews

The nation’s consumer watchdog is cracking down on businesses...

Going green: Investible backs eight climate tech companies through $30 million fund

Going green: Investible backs eight climate tech companies through $30 million fund

A cohort of eight innovative technology companies contributing to d...

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

In a sign that the heat has yet to come out of the Gold Coast prope...