NRL buys another two hotels in property push
The National Rugby League has purchased another two hotels in rugby league heartland in the past week, solidifying its push into real estate as a way to diversify revenue.
The Ibis Styles in Port Macquarie and the Mantra Terrace Brisbane were purchased this week by the NRL for around $15 million and $23 million respectively.
The Port Macquarie Hotel was offloaded by the hotel fund of struggling ASX-listed fund manager Elanor, while the Brisbane hotel was sold by prominent investors and developers Paul Fischmann, Eduard Litver and Jonathan Hasson.
They are the fourth and fifth hotels bought by the NRL in just two years, adding to the Quest Hotel in Sydney’s Woolooware Bay, Brisbane’s Gambaro Hotel and The Mercure Sunshine Coast. The sites are near the home grounds of the Cronulla Sharks, Brisbane Broncos and Redcliffe Dolphins.
The Port Macquarie Hotel is a 10-minute drive from Port Macquarie regional sports stadium, the main facility used by rugby league in the north coast region. The Mantra Terrace Brisbane, located near Roma Street Parkland, is a seven-minute drive from the Broncos’ Suncorp stadium.
Australian Rugby League Commission chairman Peter V’landys declared his ambitions to grow the sport’s asset base earlier this year when he reported an operating surplus of $58.2 million for the year to October 31, 2024.
He told The Daily Telegraph on Tuesday he was trying to buy investments that were “under the market value”. The Mantra Terrace Brisbane was sold for 42 per cent more than the previous selling price.
NRL chief executive Andrew Abdo said at the time buying hotels was about cost and revenue synergies while Mr V’landys said he expected the hotels to generate a 10 per cent annual return on investment.
“The surplus is for reinvestment,” Mr Abdo said in February. “That new revenue stream will not only result in more funds available for distribution – more to clubs, more to players, more to grassroots football – it will future-proof the game against an impact on other revenue.
“All three [hotels] are bought in vicinity to where we play grassroots or elite rugby. The plan is to grow quite significantly using rugby league IP and our major events … to drive the performance of these assets.”
The most recent purchases bring the NRL’s total spend on properties to $110 million.
HTL Property led by Andrew Jolliffe brokered the sale of the Port Macquarie Hotel while CBRE Hotels led by Wayne Bunz brokered the sale of the Brisbane hotel.
