Cairns hotel sold for $34 million
by Leon Gettler
A newly formed European-funded company called GA Group Australia, which operates out of Dubai, has swooped on the 246-room on 8138sq Rydges Tradewinds Cairns hotel, snapping it up for $34 million.
It now plans a multimillion-dollar high-end upgrade.
Company spokesman Mark Davie said the hotel would have a substantial upgrade, turning it into a 5-6 star offering for the Cairns market.
“This would in turn create substantial local employment opportunities and invest significant capital expenditure into the local economy,” Mr Davie told the Cairns Post.
Work on the multi-million refurbishment is expected to start next year and when it’s done, the hotel is set to be marketed under a luxury hotel brand such as Rydges’ QT.
Mr Davie said the GA Group’s interest in Cairns came out of recent Smith Travel Research (STR) statistics that highlighted the strength of the Australian tourism sector.
According to STR, hotel occupancy rates in Cairns for the 12 months to January 2016 rose 8.6 per cent to 74.7 per cent. Rates lifted by 5.9 per cent to $125.87 and double-digit growth in revenue per available room, was up 15.1 per cent.
CBRE Hotels national director Wayne Bunz, who had helped negotiate the sale, said there was strong ongoing investment in the region.
“We are very pleased to have secured new capital that is not only looking to acquire the hotel but is also seeking to substantially invest in the Cairns tourism sector,” he told the Cairns Post.
“The international source markets of Singapore, China and the USA have registered the strongest growth in visitor numbers year to date, increasing 32 per cent, 10 per cent and 7 per cent respectively.”
Abacus Funds Management sold the hotel as part of its sell down of assets, with net proceeds to reduce debt.
The sale leaves Abacus with two hotel assets: Rydges Esplanade in Cairns and Novotel Twin Waters on the Sunshine Coast.
29th March 2016
