EBC Hotel & Leisure Fund have sold their Tasmanian hotel group to boutique investment house, Pentagon Group, in a deal managed by JLL Hotels
Pentagon Group has bought EBC's Tasmanian hotel group
Deal included three hotels for approx. $30m
Portfolio represents 132-keys and 90 gaming machines generating c. $17m revenue
EBC Hotel & Leisure Fund have sold their Tasmanian hotel group to boutique investment house, Pentagon Group, in a deal managed by JLL Hotels & Hospitality Group.
The Portolio included three hotels; the Old Tudor Hotel in Launceston, The Bayside Inn in St Helens and the Foreshore Tavern on the outskirts of Hobart. Together they comprised 4.58 hectares of land, 132 accommodation rooms, 90 gaming machines and revenues of around $17 million.
JLL’s National Director, John Musca said, “The scalability of these assets drove significant interest from mainland hotel groups who valued the stable earnings platform in a key Australian growth market.”
Peter Harper, Executive Vice President said, “The interest in, and sale of, this portfolio again highlights the increasing recognition of Tasmania’s underlying tourism product and the growth anticipated over the long term due to these excellent fundamentals together with several significant infrastructure projects.”
The asset was the last in the special-purpose EBC Fund which last year sold its Ophir Tavern in Orange for $6.2 million. The sale was the first portfolio hotel sale in Tasmania since the part sell down of the Goodstone Group in 2011 for $27 million, also managed by JLL.
Mr Musca added, “The Tasmanian Liberal government has proposed new gaming legislation which is expected in the next 12 months and believed to likely mirror the highly lucrative Victorian model. This would see the system moving from a three party operator structure to a two party owner-preferred operator system. Anticipated to take positive effect in 2023, the changes are expected to deliver an earnings windfall for hotel operators.”