Sold Hotel – The Inchcolm by Ovolo
The Inchcolm by Ovolo Hotel, located in Spring Hill Queensland has been sold by CBRE Hotels.
Singapore-based Invictus Developments has continued to invest in the Australian hotel property market, with the $25 million acquisition of Brisbane’s 5-star The Inchcolm by Ovolo Hotel.
The Spring Hill acquisition closely follows Invictus’s $52.5 million purchase of the Bank of China building at 39 York Street in Sydney – to be refurbished into an upper upscale hotel. These two hotels mark Invictus Developments’ first acquisitions in 2023, following the purchases of the Harbour Rocks Hotel in Sydney and Quest Woolloogabba in Brisbane in 2022.
The four acquisitions are the first stage of an expected $500 million worth of investments in hospitality assets across the East Coast of Australia.
Sydney-based property investment management group, Intergen Property Group, is advising Invictus Developments on the acquisitions.
Mr Chayadi Karim, principal of Invictus, said “We are very strong believers in the Australian hotel market as international travel is returning to pre-Covid levels and Australia is seen as an exciting and vibrant destination in the Asia-Pacific region.
“The addition of the two properties, with more planned on the East Coast, adds to our current portfolio of hotels in Singapore and Japan”, he added.
The boutique Inchcolm Hotel has been acquired from TriO Capital, the investment and asset management business of independent lifestyle hotel group Ovolo.
The sale, which includes a management agreement with Ovolo, will enable TriO to recycle capital to fund the group’s continued growth and expansion.
The luxury hotel features 50 guest rooms and suites, with a restaurant, conference and meeting rooms and undercover parking.
Mr Carroll said “Hotels continue to be an asset class of choice given the sector’s positive market fundamentals and attractive risk adjusted returns. We are seeing a broad range of investors seeking growth via hotel assets, and with outbound tourism from China recovering we forecast this growth to continue”.
Mr Bunz added “Revenue per available room (RevPAR) has risen by 49% in Brisbane since 2019. With the Olympics coming in 2032, Brisbane is seen as a tier 1 destination for astute hotel investors”.
In Sydney, Invictus has plans for a $30 million repurposing of the 15 storey Bank of China office building into an upper upscale hotel, complete with rooftop bar. The hotel is expected to open towards the end of 2025.
Mitch Noonan of JLL acted on the sale of the 39 York Street office building.
Mr Noonan said ‘’We expect to see more conversions of office towers in Sydney and other cities of Australia as vacancy rates have risen as more people are working from home, a trend that has accelerated post-pandemic’’.