Jervis Bay Motel at Huskisson sells for $5.2 million

Tourism Property agent Matt Davidson said this was another major regional hotel sale, the motel being transacted as a freehold going concern. He said it was sold to an undisclosed Wollongong family.

Mr Davidson said the 15-room motel sits on premium main street land with water views, “and offers over 500 square metres of vacant land with a favourable zoning for future redevelopment”.

“After the success of the motel renovations in 2015, the owner achieved a DA approval for the construction of an additional 18 rooms,” Mr Davidson said.

“He had been approached by a number of parties over the years about selling and decided to put the property on the open market before Christmas.”

Mr Davidson said this is an excellent result for a regional location, and reflects the strong interest in both the region and in tourist accommodation as an asset class.

Mr Davidson said hotels and motels are typically tightly held as the underlying property fundamentals are generally strong.

“The second half of 2017 and this New Year period has seen limited numbers of tourism properties on the market in NSW, while buyer numbers are growing.

“So this increased competition for properties certainly helps with these high value and more complex deals.

“We continue to see increased demand from investors pushing into regional markets to achieve the yields not available in capital cities and in other asset classes.”