Laundy Group Purchases Port Macquarie’s, Australia Mercure Centro Hotel For AUD25m
Main Photo: The Mercure Centro Hotel
Date: March 2022
Name: Mercure Centro
Location: Port Macquarie, New South Wales, Australia
Number of Keys: 72
Seller: HTL Property
Buyer: Laundy Hotel Group, operator of some 25 hotels and pubs, across Australia
Mercure Centro Hotel in Port Macquarie has been snapped up by the Laundy Hotel Group for a reported figure of around $25 million.
The 4.5 star corporate hotel, located in Port Macquarie’s commercial, retail and entertainment precinct, was sold off market by long-term owner HLF Pty Ltd, through HTL Property.
“Whilst not housed in the same equity structure as our other beachside accommodation assets in Noosa, Manly and Terrigal; this coastal property intersects perfectly with our national investment objectives, and adds deftly to the growing portfolio,” said Laundy Hotel Group CEO, Stu Laundy.
The Laundy Group has teamed up with local hospitality operator Alistair Flower, of Flowers Hotel Group and will continue to run the property under a franchise agreement with Accor Hotels, which has been in place since the hotel’s opening in 2007.
The Laundy family have been in the hotel industry for four generations. Arthur (Snr) and Veronica Laundy started the business in 1945 with the Sackville Hotel, Rozelle.
Moving to the west they purchased land at Bass Hill in 1964 and built the Twin Willows Hotel. Although it looks very different today, the Twin Willows is still the headquarters of the Laundy Enterprise.
At that time Arthur (Jnr) had his own leasehold of the Royal Exhibition Hotel, Surry Hills.
In 1969 tragedy struck – Arthur (Snr) died when the light plane he was piloting went down in Burrendong Dam, Wellington. He, along with 3 staff members, was killed.
The 72-room hotel, constructed over five levels, features an extensive restaurant and bar, rooftop leisure area, expansive conference space, swimming pool and day spa, as well as two retail outlets on the ground floor.
HTL Property said, “The uncomplicated corporate hotel ticks every box in terms of scale, quality and diversified income attributes.”
The popular tourist town of Port Macquarie has experienced substantial infrastructure investment of late including major highway upgrades, $12 million recent airport upgrades, and the new $30 million Glasshouse Convention and Entertainment Centre.
“This powerful suite of economic generators, when combined with an established tourism profile, speaks volumes for the ongoing strength and vitality of the entire mid and far north coast of NSW,” said HTL Property Managing Director, Andrew Jolliffe.
“The mid-market accommodation sector has shown demonstrable improvements in trade over recent months, and none stronger than true coastal city centres, which very efficiently capture corporate and leisure travellers alike.”
Jolliffe expects the Port Macquarie accommodation market to enjoy “an extremely prosperous outlook” and will continue to attract investors and tourists alike.
With confidence rising in tourism, HTL Property Director, James Carrick, is confident in the future of the property.
“This is an unprecedented boost to the domestic tourism industry, and a once-in-a-lifetime opportunity for astute investors to snap-up assets such as Mercure Port Macquarie; which are sure to benefit,” said Carrick.
“Mercure Port Macquarie promotes a strong and steady history of profitability and growth; with ongoing revenue growth forecast in the current financial year. When underpinned by the resurgent domestic tourism industry and a number of value-add opportunities available, we anticipate the trading performance of this asset will continue in both an upward and robust trajectory.”
Price: AUD25m
Price per Key: AUD347k
THPT Comment: Good buy for Laundy Hotels, making their portfolio well balanced for this family run hotel business. Interesting they have vested management to an external organisation, mainly known for their pubs
First Seen: Hotel Management Australia
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