Redhill Hospitality has acquired the freehold going concern interest in Tenterfield’s Best Western Henry Parkes Motel, highlighting the continued investor interest in quality motels in strategic locations.
Tenterfield is regarded as a key arterial service centre given its New England Highway location near the New South Wales and Queensland border.
CBRE Hotels’ Associate Director Hayley Manvell steered the off-market sale process, with the $4 million acquisition adding to Redhill Hospitality’s portfolio of 10 regional motel assets across Queensland, New South Wales and Victoria.
Redhill Hospitality founder and CEO Guy Peterson said, “We are focused on growing a portfolio of regional Australian motels that provide value to both guests and investors. Despite increasing domestic tourism, this sector has suffered from poor management, under investment and insufficient economies of scale and we see this as an opportunity.”
Positioned on an expansive 7,606sqm freehold land parcel, the asset comprises 31 rooms, a four-bedroom cottage and five-bedroom manager’s residence, as well as a 55-seat restaurant and function and events space.
The 3.5-star motel was sold with vacant possession and has been rebranded as The Henry Parkes Motel Tenterfield.
Ms Manvell said, “The asset is positioned along a key travel corridor on the New England Highway which connects Brisbane to Sydney. The motel offers strong upside to the purchaser through rebranding and repositioning significant underutilised space.”
Tenterfield is regarded as a key regional tourism hub, due to its national parks, a myriad of events throughout the year and significant historical and heritage landmarks and attractions.
Commenting on the recent flurry of motel sales across both Queensland and New South Wales, Ms Manvell noted, “With the trend of Australians exploring their own backyard showing no signs of slowing, particularly with the depreciation of the Australian dollar, savvy investors are viewing high quality motel assets within tourism hubs or along key travel thoroughfares as strategic acquisitions.”