Geelong’s Mercure hotel up for sale
Geelong’s prestigious Mercure hotel has been put on the auction block.
The Kildair Hotels Group has put it on the market, expecting it will fetch $25 million.
The four-star Mercure Hotel was built in 197. It includes 138 guest rooms, restaurant, bar, function rooms and an outdoor pool and spa.
Kildair Investments subsidiary Woodleigh Glen bought the hotel from administrators for $200,000 in 1994. The timing was fortuitous, coming during the recession when Geelong was struggling.
CBRE agent Scott Callow, who is marketing the property with Rob Cross said the vendor was looking to take advantage of the current market conditions.
"They've had the hotel for quite some time and have decided it's time to capitalise on the strong market," Mr Callow told Fairfax Media.
"A record $2.6 billion in Australian hotels changed hands and this momentum has carried into 2016."
The falling Australian dollar is driving the sales boom, boosting the value of hotels with record numbers of local tourists and international visitors taking advantage of cheaper prices.
The data shows hotel sales have soared since 2014. Back then, only 1 per cent of investors wanted to buy hotels. This year, 14 per cent of investors were looking to acquire hotels. Hotel are now the third most preferred asset behind office and logistics. Demand is pushing investors out of the cities and into regional areas.
Geelong is a key location. It is the gateway to the popular Great Ocean Road.
It’s also home to several large government departments, including Transport Accident Commission, Worksafe and the National Disability Insurance Agency. However, it’s been doing it hard in recent times with the Ford factory closing in October and Alcoa's Point Henry plant shutting down in 2014.
The popularity of Geelong for government and corporate activity is matched by a year-round sports and events calendar, which has helped to underpin the Mercure Hotel's strong trading performance," Mr Callow said.
By Leon Gettler, May 12th 2016
