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The Quest Dubbo hotel has sold for $17 million although the price has fallen short of an initial price guide of upwards of $20 million when the property was placed on the market a little over a year ago.
The 4.5-star hotel, which comprises 65 serviced apartments, has been bought by Perth’s Acure Funds Management from the Dubbo-based construction services company MAAS Group Holdings.
Quest Dubbo, which is located at 22 Bultje Street in Dubbo’s main commercial area, has been sold with a long lease in place to the Quest chain until 2048. The lease is backed by Quest’s parent company, Singapore hotels group The Ascott Limited.
The property, which sits on a 2,029sqm site and includes ground-floor retail tenancies, was advertised last year with a passing income of more than $1.45 million a year.
“The purchaser was particularly drawn to this asset not only for its extensive amenities but also for the rare opportunity to capitalise on Dubbo’s thriving tourism industry, while taking advantage of the stability and security that comes with a long-term lease with a global brand like Ascott,” says Nick Lower, the state director hotels at Savills Australia and New Zealand.
The property was marketed by Lower and Savills colleague Selin Ince, who is senior executive of hotels with the real estate group.
When the property was placed on the market in August last year, Lower said at the time that price expectations were “upwards of $20 million”, as this was the only 4.5-star hotel in one of NSW’s busiest regional areas attracting more than 1.5 million visitors a year.
Following the sale announced today, Ince says that Dubbo’s position as a “mature and diversified tourist hub” was a key drawcard for Acure.
“The combination of a growing tourism industry and limited competition created a significant upside for the purchaser,” Ince says.
“Moreover, the Australian Government’s recent $7 million investment into the development of a new tourism centre in the Dubbo region, further enhancing the region’s appeal, makes this acquisition all the timelier and more advantageous.”
Quest Dubbo has a large ground floor lobby and reception area, a gymnasium and fully equipped conference room, guest laundry and housekeeping storage space, as well as a ground-level sealed and secured car park with space for 45 vehicles.
The property is now part of Acure Funds Management’s multi-asset income fund, known as Acure Hospitality Trust No.1, an $83 million portfolio that also includes Western Australian properties Sebel Mandurah, Quest Fremantle and Red Sands Hotel.
Acure, which was founded in 2012 and is part of the Acure Asset Management group, manages 17 property syndicates comprising commercial, industrial, retail, residential and hospitality assets.
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