27/08/2014 - 14:39

Ibis Budget Hotel up for sale

27/08/2014 - 14:39

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Ibis Budget Hotel up for sale
The Ibis Budget Hotel on Great Eastern Highway has been operating at 85 per cent capacity.

Sydney-based Tourism Property Investment Group has appointed commercial agent CBRE to sell the Ibis Budget Hotel on Great Eastern Highway, part of a nation-wide portfolio shuffle.

CBRE said it had also been appointed to sell the Ibis Budget Hotel in Melbourne's airport precinct, following the successful sale of the Ibis Windsor in Brisbane last month.

CBRE Hotels senior director David Kennedy said the 73-room Perth Ibis had significant redevelopment potential due to surplus land on site.

"The Perth Ibis will sell readily as it has a strong trading performance as well as future development upside," he said.

"This becomes a real focus when occupancy levels exceed 80 per cent, and the hotel has achieved over 85 per cent in recent years.

CBRE Hotels senior director Wayne Bunze said both hotels were managed by Accor Asia Pacific.

"This budget-style hotel has limited food and beverage services which mean low overheads and high profit margins close to 50 per cent of gross revenue," he said.

An expressions of interest campaign for the properties, which can be sold individually or as a pair, closes October 2.

 

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