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Royal Pacific Hotel on Sydney\'s Lower North Shore
The Royal Pacific Hotel on Sydney’s Lower North Shore has been listed for sale amid continued strong investment activity in Australia’s hotel market.
CBRE Hotels’ Michael Simpson and Vasso Zographou are managing the Lane Cove sale via an Expression of Interest campaign closing December 7, 2023.
The Royal Pacific Hotel, one of the Lower North Shore’s best accommodation assets, is positioned on a 3,092sqm freehold land parcel and offers 64 guest rooms and one manager’s residence across the building’s seven storeys.
The hotel also offers full-service amenities including the 1947 Bistro (which is leased to an experienced external operator), conference space, outdoor swimming pool, gymnasium and 40 car parking spaces.
“The hotel has recently undergone a significant $1.31 million capital expenditure program which saw work conducted to the rooms, corridors, back-of-house facilities and internal walling,” Mr Simpson said.
“The asset, which is being offered for sale unencumbered by any management agreement, boasts a strong established trading history and enjoys consistent occupancy levels, rate growth and profitability.”
Given the property’s large landholding and locality, the asset also offers strong long-term redevelopment and repositioning potential. These outcomes may include the addition of approximately 36 guest rooms to the current inventory and redevelopment into approximately 70 – 80 residential apartments subject to the relevant planning approvals.
Mr Zographou added, “Prominently positioned in a rapidly growing pocket of the Lower North Shore, the hotel benefits from its street-facing allotment along the Pacific Highway, connecting the asset to Chatswood, North Sydney and Sydney CBD.”
“Sydney is Australia’s most sought-after and tightly held hotel investment destination, with this asset affording the opportunity to acquire a significant and high-quality foothold in the market.”
“The scale and strategic nature of this asset coupled with Sydney’s continued hotel and tourism market recovery is expected to generate significant investor interest from a variety of both domestic and international capital sources.”