Acure buys Newman hotel

Acure Asset Management has bought the Red Sands Hotel and Accommodation Park in Newman for $10 million, adding to its stable of hospitality assets in Western Australia.

The national funds manager bought the accommodation park, comprising an 83-room hotel and a tavern across two sites totalling more than 10,000 square metres, from local investor Philip Meagher last month.

It marked the third WA hotel transaction for Acure in 2023, following its purchase of Quest Fremantle for $38 million from Sirona Urban in March and Sebel Mandarah for $18 million in July.

CBRE’s Ryan McGinnity and Aaron Desange, who brokered the deal, said strong demand for the asset reflected the strength of the regional accommodation market.

“CBRE sold over $60 million in regional hotel assets in 2023 including, Sebel Mandurah, Lighthouse Beach Resort Bunbury, Busselton Beach Resort, Red Sands Newman and Ace Motel Albany,” Mr McGinnity said.

“Given the strength of the sector, we expect similar conditions in 2024.

“We had such strong demand for everything we took to the market in this space.”

Acure formed a new fund to house the Newman asset, with the Mandurah and Fremantle properties in a separate trust.

The fund manager also owns two other operating hospitality assets in Newman, including Newman Hotel, which it bought in a separate syndicate in 2017.

Additionally, Acure owns Capricorn Village, which it bought in 2014.