An 81-room hotel on the Sunshine Coast has been sold to the governing body of rugby league in Australia.
The Australian Rugby League Commission (ARLC) has purchased the Mercure Kawana Waters in what is the largest hotel transaction on the Coast in more than five years.
The sale was conducted by JLL Hotels and Hospitality Group’s Gareth Closter following a highly competitive expression of interest process that yielded nine offers from local, interstate and international groups.
The price guide when marketing the hotel was in the ‘early $20 millions’ and it is understood it transacted around that level.
The Birtinya hotel has an occupancy rate above 84 per cent and is close to several major facilities such as Sunshine Coast University Hospital.
In a media release from JLL, it said the ARLC was also attracted to the Mercure Kawana Waters as it is the closest hotel to Sunshine Coast Stadium.
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The stadium precinct is soon to be the site of a new indoor sports centre to be utilised for the Brisbane 2032 Olympic Games, and it is also used by the Redcliffe Dolphins for some games.
The sale represents the third hotel that the ARLC has purchased in the past 18 months following the acquisition of the Gambaro Hotel in Brisbane and the Quest Woolooware Bay Hotel in Sydney.
The ARLC is the single controlling body and administrator of rugby league in Australia, from junior to elite levels.
Led by chairman Peter V’landys, it organises the NRL competition, as well as State of Origin and Australian representative matches.
“Opportunities of this nature in South-East Queensland are highly sought after, let alone in a premium location on the Sunshine Coast,” Mr Closter said.
“This sale further demonstrates the institutionalisation of the mid-market hotel sector with a variety of sophisticated buyers actively seeking such opportunities to add to their existing holdings.
“This asset class has historically had fragmented ownership dominated by private investors, however we seen considerable amalgamation in recent times.”
The ARLC will partner with Accor to operate the hotel under a franchise agreement with the Mercure brand.
Accor Pacific CEO Sarah Derry said the hotel group was thrilled to partner with the sporting body.
“We look forward to this new chapter in our partnership with the NRL and are excited about the opportunities it will bring,” she said.
“Together, we can further enhance the connection between sport and our community, making a positive impact on both the tourism and sporting sectors in Australia.”
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