- Opened in 1911 as the Derward Hotel, and was most recently the European Hotel
- Most recent transaction for the property was in 2018, widely reported to be $10M
- The property is available to buy or lease
An iconic burgundy building based on the corner of Perth’s Pier and Murray Streets is on the market again.
This comes as Western Australia’s borders, and indeed the nation’s borders, have been open for over a month, with hospitality and tourism businesses looking to capitalise on what seems an eternity since they could last enjoy a salubrious day of trading.
It also comes hot on the heels of last year’s London Court transaction, another European styled Perth building that has become a Perth icon over the decades.
History
What is known by most West Australians as the Miss Maud hotel in Perth’s CBD, currently branded the European Hotel was originally constructed in 1911 and opened as the Derward Hotel; the property was rebranded as Miss Maud’s in the 1970s.
After almost forty-five years under the Miss Maud brand, owner-operator Maud Edmiston sold the property in April 2018 in what was widely reported to be a circa $10 million deal.
The property went to South Perth based Stockholm Hotel Management, a company that was created in 2017.
Previous transactions
In a campaign managed by Cygnet West’s Wayne Lawrence and Henry Vu, the European Hotel is accepting expressions of interest for either buying or leasing.
The campaign timing is coincidentally similar to the 2018 sale in terms of timing and market conditions.
While the situation is clearly different, the 2018 sale was during what was widely expected to be an uplift in tourism for Perth and WA, with the state government injecting significant funds into the tourism sector, and other major infrastructure projects like Optus Stadium then recently opened.
Today, the property is again on the market early in the year, tourism is expected to lift, and significant amounts of state government money has gone into boosting the tourism sector. Optus Stadium is again in the headlines, expecting to host a major international rugby test in July between the English and the Aussies.
The market
Cygnet West’s Wayne Lawrence said there has been a recent uplift in interest regarding Perth’s hotel market, with most buying and leasing enquiry coming from the east coast.
“Traditionally, Singaporeans have been the main contenders for these assets and with WA borders having recently been open, this offering may be the impetus for an influx of enquiry from those entities,” added Mr Lawrence.
The property
The European Hotel is a boutique 52-room, four-star property located on a 1,162 square metre site with nearly 70 metres of street frontage to Murray and Pier Streets. It also includes a 77sqm cafe, a 443sqm restaurant and a 100sqm catering kitchen.
Cygnet West’s Henry Vu said the hotel, which is not heritage-listed, also had strong redevelopment potential, with a permitted plot ratio of 5:1, with bonuses available depending on the future use.
Mr Vu also noted that “… the property is currently owner-operated and has been well maintained, it presents an outstanding opportunity for an incoming operator to walk in and trade immediately.”
“The seller is flexible and is willing to look at all options from an outright acquisition to leasing the whole or the separate components of the building.”
Expressions of interest for the property close on Thursday 19 May.
