The Union Jack Hotel in Cairns, tropical Far North Queensland has officially hit the market through leading agency Savills Australia.
Located at 56-60 Spence Street in Cairns The Union Jack Hotel, affectionately known by locals as “The Jack”, comprises a 1,457 sqm* site, fronting the busy corner of Sheridan and Spence Street in the heart of Cairns CBD. The adjoining backpacker hostel accommodation, “The Jack House”, at 52-54 Spence Street is also included in the sale and occupies a 653 sqm* site.
“The Jack” is the only pub-style backpacker hostel in Cairns and has experienced a major capital injection by the vendor, with around $2 million in works completed to the roof, beer garden and veranda.
The Hotel’s facilities include a Main Bar, Back Bar, Beer Garden, Bistro and Dining Area, Gaming Room (25 EGM’s) and Accommodation (131 Backpacker beds across 18 Hotel rooms on the first level of the pub and 15 rooms at “The Jack House”).
The Union Jack Hotel has a rich local history and was originally built in 1926 and known as “Rusty’s Pub”. It was sold and renamed “The Underdog”, before a later incarnation as Irish pub “Shenannigans”.
The current owner purchased the asset in 2011, changing its name to The Union Jack Hotel, and repositioning it as an English pub with a focus on sport and live music.
Savills National Director Leo Alaban said, “the improvements provide an incoming operator the opportunity to further capitalise on the venue’s revenue growth.”
“The asset is located on the busiest intersection in Cairns CBD and has the largest capacity for a hotel in the inner-city area at 800 patrons - providing a solid platform for trade upside for the new owner.” According to Alaban, Cairns attracts repeat visitation from both domestic and international travellers, due to its pristine natural wonders and abundance of activities on offer.
Cairns is the only place in Australia where two UNESCO World Heritage Sites are located side-by-side. It is considered the gateway to the Great Barrier Reef, Daintree and Wet Tropics rainforest.
According to Cairns Regional Council, Cairns’ tourism market has recovered in the post-pandemic climate with domestic passenger numbers returning to pre-COVID levels in April 2022, averaging more than 80,000 passenger movements per week.
Future tourism is underpinned by significant infrastructure projects across Cairns including the refurbishment and expansion of Cairns Convention Centre, due for completion later this year. The 10,000sqm expansion includes significant increases in capacity to cater for multiple functions, helping the city to attract new conferences and events of greater sizes and complexity.
The Cairns City Centre and iconic Esplanade are also benefitting from the $28 million Esplanade Dining Precinct project upgrade.
CQUniversity has expanded its presence in Cairns to a new full-sized CBD Campus, ushering in a new era of education, training and employment opportunities for Far North Queensland.
Furthermore, the State Government has committed to spending $250 million for a major expansion of hospital capacity (141 new beds) in Cairns, as part of the largest investment in new hospitals and new beds in Queensland’s history. In addition, a new $70m mental health unit will be constructed as part of the expansion of Cairns Hospital. Works are programmed to be complete by the end of 2023, with the facility becoming operational early in 2024.
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