The syndicate paid $13.5 million for Il Mondo Boutique Hotel on Rotherham St after an expressions of interest campaign by JLL Hotels & Hospitality Group’s Paul Fraser and Peter Harper.

Mr Fraser said they received about 100 inquires from a range of owner-operators, passive investors and developers, both locally and internationally,.

“Notably, many of these groups were new entrants to the Brisbane market or hotel sector in general,” he said.

Mr Fraser said the sale represented a price per key of $337,500 — far surpassing other CBD fringe and metropolitan hotel sales that have taken place in Brisbane over the past few years.

He said the transaction could be considered a fresh benchmark for Brisbane’s hotel property market.

Developed by family company GBW Developments in the 1990s, the award-winning property offers 40 keys comprising hotel rooms and apartments, together with a restaurant, swimming pool and extensive undercover car parking.

It occupies a prominent 1580sq m freehold site across the road from the Story Bridge hotel and zoning provisions allow a residential redevelopment upside.

Mr Harper said: “This result isn’t surprising as investment activity in mid-scale hotels across Australia has increased to historically high levels over the past year, driven by continued demand among domestic groups, and more so, an increasing focus by offshore parties.”

“It’s exciting to see how this sector of the market has now become a major interest to offshore buyers.

“Previously, foreign capital only focused on $20 million plus assets in the capital cities.
“Now we’re being inundated by foreign investors, primarily from mainland China, on every hotel asset that we are selling.”