HPI’s latest $20M acquisition gives it its 49th venue

Hotel Property Investments has teamed up with operator Australian Venue Co (AVC) to acquire Surfair Beach Hotel on the Sunshine Coast for $20 million.

This is HPI’s sixth acquisition since February last year.

In a similar structure to their November purchase of Airlie Beach’s Jubilee Hotel, HPI acquired the property and is leasing it to AVC.

The venue is expected to generate a 7 per cent return to HPI on a new 20-year lease.

Managing director of HPI, Don Smith, told the Australian Financial Review, “There are a lot of pub transactions occurring now and a lot of them are freehold going concerns.

“This deal shows the strength of the relationship between HPI and AVC.”

Mr Smith also mentioned that the Surfair was a well performed pub that had been renovated during the Covid-19 pandemic.

 “The sheer depth of qualified buyers is the strongest it has been in the last 10 years, with new interstate entrants contacting our office every week looking to conclude transactions, Surfair co-agent, Mr Glenn Price Price said.

“This, coupled with robust interest from seasoned private and institutional groups already in situ, dictates that quality hospitality property is being hotly contested both via on- and off-market sales campaigns.”

The acquisition of the Surfair Beach Hotel sees HPI’s portfolio value climb to almost $900 million across 49 venues.

Irit Jackson, 11th May 2021