JLL Hotel & Hospitality sells Eco Village Mission Beach

One of Tropical North Queensland’s hidden gems, Eco Village Mission Beach, has sold to southern based accommodation operators after an on-market expressions of interest campaign.

The sale was undertaken by JLL Hotel & Hospitality Group’s Senior Vice President, Gareth Closter.

Offering 17 bungalows, a couples retreat, a resort style pool and a restaurant/function facility (currently closed) the property is situated on a 9,080sqm site with a unique rainforest feel and only a few steps to the scenic Mission Beach.

At close to $3 million, the sale represents a strong price per key rate of around $150,000 and a yield of sub 7%.

“This transaction is yet another example of the investor market that exists for quality accommodation assets not only in Tropical North Queensland, but across Queensland more broadly,” said Mr Closter.

The sale process for the Eco Village Mission Beach attracted strong interest from established hotel investors and operators, together with a number of new market entrants. “The fundamentals of this asset clearly resonated with the market. With an attractive price point, unique setting boasting 118 metre ocean frontage to Mission Beach, quality existing improvements and broad repositioning potential, the property was a truly special offering,” added Mr Closter.

He added, “Testament to this, the property traded well throughout the pandemic given its ability to pivot towards the local drive market instead of typical inbound markets including Melbourne, Sydney and overseas. The purchasers now intend to capitalise on a clear opportunity and undertake a refurbishment into a more boutique mid-tier asset.”

The Eco Village sale comes off the back of other deals concluded by JLL Hotels & Hospitality over the past 90 days in Queensland, including the Sunshine Tower Hotel Cairns ($10.7 million), Hamilton Motor Inn Brisbane ($6 million) and the Tropical Heritage Cairns (Undisclosed).

“JLL Hotels & Hospitality’s mid-markets team is currently experiencing unprecedented levels of activity across the country. The evolution of this asset subclass is undeniable with increased national interest in metropolitan and regional hotels, motels, hostels and caravan parks for sale. Not only are traditional players in the space becoming more active, we are also seeing it become increasingly institutionalised,” said Peter Harper, Managing Director & Head of Investment Sales Australasia.

“Whilst the Australian hotel market isn’t without its challenges at present, drive to and regional assets in particular are typically located in destinations that are experiencing strong trading conditions and with somewhat of a reset of fundamentals during COVID, provide enormous opportunity for both owners and investors moving forward,” added Mr Harper.

“Our Queensland team has now turned its focus to the sale of Castaways Resort & Spa in Mission Beach and the Banana Barracks in Tully. This increased sale activity in the Cairns and Cassowary Coast region looks likely to stay with buyer interest only growing,” Mr Closter concluded.