Originally constructed in circa 1970, The New Esplanade Hotel is a nine level 3 star hotel that features 67 guest rooms, function venue and restaurant. In addition, the Asset also comprises a stand-alone multi storey 144 bay public car park.
The Property occupies a prominent position in the Perth Central Business District and is surrounded by a number of the city’s main Premium and A grade office buildings which accommodate a number of private and public companies together with several government agencies. Furthermore, the property is just a short distance from a number of leisure demand generators including the Perth Convention and Exhibition Centre, Swan River, His Majesty’s Theatre, and Alf Curlewis Gardens. The Perth International Airport is within 20 minutes drive of the Property.
Situated on a prime 1,452 square metre freehold site with a wide street frontage to The Esplanade, the Property enjoys a favourable zoning which allows for a number of alternative uses. In 2007 a development approval was issued which allowed the demolition of the existing improvements and the construction of a 44 level residential building containing 61 multiple dwellings and 148 car bays.
The New Esplanade Hotel is currently owner operated and has achieved excellent occupancy levels over the past few years. An opportunity does however exist for an incoming owner to significantly improve average daily rate and in turn profitability. With excellent property fundamentals and an enviable location, the Property lends itself well to a refurbishment and subsequent re-positioning as Perth’s leading boutique or limited service hotel.
Driven by the extensive mining and mineral processing operations throughout greater Western Australia, Perth has been the beneficiary of a booming state economy in recent years. This activity has not only led to strong accommodation demand, but also commercial and residential development. As such, these higher alternative uses have taken precedence over new hotel development which has led a benign new supply of hotel rooms and positive trading outlook.
The sale of The New Esplanade Hotel presents the opportunity to acquire an established freehold hotel and car park asset with excellent value-add/re-development opportunities in one of Australia’s most sought after investment markets.