The Australian Rugby League Commission has snapped up the Quest Woolooware Bay Hotel, its second accommodation acquisition, located next to the Cronulla Sharks’ home ground in Sydney’s south.
The purchase, for an undisclosed price, is part of the commission’s strategy to find revenue streams outside the NRL competition it administers. It scooped up its first hotel, Brisbane’s Gambaro, close to Suncorp Stadium, last year.
“The property is strategically positioned in close proximity to the Cronulla-Sutherland Sharks home ground PointsBet Stadium, in a newly developed commercial area,” the ARL Commission said in a statement. “The transaction results in a passive income stream at strong and stable yields.”
The Woolooware Bay Hotel, owned by property developer Novm, was listed for sale in May. It is part of the $1 billion Woolooware Bay Town Centre mixed-use development. The sale was brokered by CBRE’s Michael Simpson and Vasso Zographou.
“The location of Shark Park makes a lot of sense for the NRL as a buyer, but they bought it in the face of stiff competition,” Mr Simpson said.
“It’s a high-quality asset in a location where pretty much every single room has expansive views of the bay or golf course, which makes it quite a unique Quest hotel which often opts for other locations, as it does not want to operate as a five-star hotel.”
In the centre of Sydney’s Sutherland Shire, the serviced apartment hotel is due to open in late October and is leased to Quest Hotels. It can house up to 71 rooms as well as conference facilities, a business lounge and a gym. Quest Hotels is a member of The Ascott Limited chain of hotels, the largest serviced apartment network in the world.
Unlike the Brisbane-based Gambaro Hotel, the accommodation next to Shark Park will not be rebranded. The Gambaro has rooms that are named after “the game’s legendary players” including Wally Lewis, Allan Langer and Darren Lockyer suites.
Hotel deal activity has been strong in 2023, with investors keen to take advantage of the tourism boom and flexible hotel rates that can be charged even as other property asset classes, such as office, struggle to find buyers.
Earlier this year, CBRE forecast hotel deals were expected to top $2 billion as institutional and private investors look to grab a piece of Australia’s resurgent tourism sector.
Hilton Sydney was snapped up by Hong Kong-based investment manager Baring Private Equity Asia for $530 million, local fund manager Salter Brothers bought the Spicers Retreats brand and six resorts for about $130 million, and Syrian billionaire Ghassan Aboud secured the Rydges Sydney Harbour at The Rocks for a discounted $100 million.
The hotel transaction market largely froze in 2020. Just $682 million of assets changed hands as the COVID-19 pandemic forced the shutdown of much of the sector and occupancy rates fell into the single digits.
