The iconic Esplanade-fronted Cairns Harbourside Hotel has changed hands for the first time in 34 years in a deal that reflects the strength of the Queensland hotel market and continued investor interest in regional assets.
The previous owners sold the asset as part of a broader portfolio repositioning.
The Cairns hotel market has seen substantial growth in both ADR and RevPAR in recent years, increasing 43 per cent and 47 per cent respectively compared to 2019 levels. The market is expected to see further upside as traditional international source markets such as China and Japan continue to rebuild.
JLL Hotels & Hospitality Group managed the sale of the Cairns Harbourside Hotel, with Gus Moors and Gareth Closter responsible for the transaction.
Commenting on the sale, Gus Moors, Managing Director at JLL noted, “This is an extremely positive transaction for Cairns and the Queensland hotel market.”
Situated on an almost 5,000sqm plot on Cairns’ iconic Esplanade, the independently operated hotel has 173 well-proportioned rooms split across two towers, along with expansive ground floor leisure and food & beverage facilities offering views of Trinity Bay.
Commenting on the sale, Gareth Closter, Senior Vice President at JLL said, “The strong trading conditions that Cairns has enjoyed over the past 3 to 4 years is attracting increased capital to the hotel investment market. In addition, freehold opportunities of this scale, boasting over 150 keys, are rarely available in regional Queensland.”
With its Esplanade frontage, the hotel appeals to the leisure and conferencing market, while its close proximity to the airport and hospital supports corporate and government demand.
The recent announcement of the $1 billion plus expansion of the master planned Cairns Hospital is expected to support long-term demand for accommodation in the region. With construction anticipated to commence in late 2026, and delivery mooted for 2030/21, the positive impact of the hospital upgrade will be virtually immediate.
“At JLL, we are absolutely believers in the Queensland market. There is genuine and ongoing momentum building in investment markets across the Queensland and this is filtering into the regions,” Mr Closter added.
The sale process for the Cairns Harbourside Hotel was a competitive off-market process with multiple bids presented to the vendor. The new owner expressed strong confidence in the Cairns hotel market and believes that Queensland represents a prime investment destination in the lead-up to the upcoming Olympic Games.
Cairns Harbourside Hotel will continue to be operated independently with its current branding and Hotel Team. Hotel General Manager Glen Macdonald said, “It has been a delight to lead a well-established team whilst working alongside the previous owner, a recognised, prominent pioneer in Cairns’ tourism growth and development over the past 36 years. The entire team and I are thrilled to continue delivering strong operational performance while pursuing strategic growth for Cairns Harbourside Hotel under the new ownership, a progressive and dynamic hotel operator in North Queensland, with a clear vision to further strengthen its presence across Australia’s key tourism and regional markets.”
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