Rydges Palmerston Darwin
The Rydges Palmerston in Darwin has been listed for sale for the first time since opening in 2015. Image supplied.
  • Rydges Palmerston Darwin listed for sale for first time since opening in 2015
  • Expressions of Interest campaign to be managed by CBRE agents on behalf of business magnate John Robinson
  • Asset presents unique investment opportunity, drawing a steady stream of transient workers in LNG industry

The Rydges Palmerston Darwin has been listed for sale, marking the first time the prestigious hotel has been offered to the market since its 2015 opening.

The 200-room hotel boasts a 4.5-star rating and is offered for sale on behalf of Northern Territory business magnate John ‘Foxy’ Robinson.

CBRE Hotels’ National Director Wayne Bunz and Associate Director Hayley Manvell have been appointed to manage an International Expressions of Interest campaign.

The campaign will end next month on September 22.

Region’s LNG workforce a major drawcard

The Rydges Palmerston occupies an 8,600 sqm freehold site in Palmerston City and consists of 135 hotel rooms and 65 one- and two-bedroom apartments.

Among the hotel’s other key amenities are a 24-hour reception, six large event and conference spaces, a restaurant and bar, pool, gym, and parking facilities for 251 cars.

The hotel provides a unique opportunity for investors, achieving strong figures throughout its lifetime.

“This is a high-yielding investment opportunity backed by proven historical financials, with the hotel consistently trading at near 100% occupancy levels and achieving a net profit of $7.2m in the past financial year.”

Wayne Bunz, CBRE Hotels’ National Director

Mr Bunz added that while the hotel is currently operated via a franchise agreement with Rydges Hotels & Resorts, the purchaser will be afforded the flexibility to continue with the franchise, rebrand, or own and operate the asset personally.

Rydges Palmerston
The Rydges Palmerston hotel in Darwin. Image supplied.

Expected to drive further demand for the hotel is the site’s proximity to liquefied natural gas (LNG) fields, mining and port facilities and Australian Defence Force bases.

Darwin is a globally-significant LNG service and supply hub, which attracts a steady stream of short-term workers to the area. The Darwin LNG and Ichthys LNG projects in particular boast a combined annual production capacity of 12.6m tonnes.

The region is also the focus of private and public infrastructure pipeline worth approximately $50 billion. Notable projects in the pipeline include the $35bn Sun Cable solar energy site, the $1.5bn HyperOne high-speed network, and the expansion of the INPEX Ichthys LNG onshore facilities.

“The hotel benefits from a diverse and growing demand base, with limited local competing accommodation.

“The project pipeline will put Darwin on the global stage and attract a substantial influx of transient workers seeking high-quality short-term accommodation, meaning the long-term guest base for this asset is secure,” concluded Mr Bunz.

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