Hotel for Sale – QT Hotel and East End Retail precinct
The newly developed and multi-award-winning QT Hotel and East End Retail precinct, part of Newcastle’s East End development, has been listed for sale by owner and developer Iris Capital.
CBRE’s Michael Simpson, Tom Gibson and Vasso Zographou are managing the sale via an Expression of Interest campaign closing 24 August 2023.
Iris Capital has invested over $700 million into the reinvigoration of Newcastle’s East End as a mixed-use precinct, with the hotel and retail being the cornerstone, complemented by high-end residences.
On completion, the four stages of the East End development will include over 500 homes accommodating more than 1400 residents.
Housed within the 113-year-old heritage David Jones building, QT Hotel offers 104 guest rooms and suites with dining options including a rooftop bar with views across the harbour and coast.
The hotel opened in June 2022 and is managed by hospitality giant EVT under the QT luxury-lifestyle brand. Despite only being in its second year of operation, the hotel has established a market leading position in Newcastle’s accommodation sector based on its quality, multi-faceted facilities, customer-centric services, and the appeal of the world-class precinct.
The 2,775sqm East End Retail precinct, anchored by Woolworths Metro and CBA, benefits from the residential catchment at East End Village as well as residential developments in-and-around the Newcastle CBD.
A popular destination for both locals and visitors, its central courtyard and Melbourne-style laneways are lined with boutiques and eateries. The precinct also includes the Lyrique Bar – a premium sports bar featuring 10 electronic gaming machines.
“This opportunity represents a significant offering for an astute purchaser with multiple diverse and defensive income streams including hotel rooms, successful food and beverage outlets, the substantial retail component, and gaming operations. We anticipate very strong interest from a wide range of investors for these assets,” Mr Simpson said.
“This city-defining development has reinvigorated the entire Newcastle CBD, creating a sense of community with high-end residential, a five-star boutique hotel, best-in-class retail and an exciting laneway culture connecting these uses. With an exceptional location in the heart of Australia’s most diverse and fastest growing regional economy, we anticipate very strong interest from a wide range of investors for these assets”
Mr Zographou added, “Experiencing 7% migration growth year-on-year since the start of the pandemic, Newcastle continues to be a hot spot for residential developments. Having changed drastically over the last seven years, the city is also experiencing investment through state and federal infrastructure projects, mining and resources and private construction which will greatly benefit the growth of these assets. Its proximity to world class beaches as well as commercial and infrastructure demand drivers will ensure diverse demand drivers for the precinct for years to come.”