Sydney, 3 September 2008 – The Crown Plaza Hotel in Newcastle has sold for $48.6 million to a private Sydney-based property investor. Mr Mark Durran, Jones Lang LaSalle Hotels’ Executive Vice President Investment Sales, negotiated the off-market deal on behalf of Becton Investment Management Limited (Becton) as responsible entity for the Newcastle Harbour front Hotel Trust.
Despite the credit crunch and perceived economic uncertainty, the sale represented an initial yield of 8.0%. “With a number of other assets on the market and a solid sale price achieved for this Hotel, this shows the confidence investors have in the hotel sector at present,” said Mr Durran. He added, “In a competitive off-market bidding process, a local property investor outbid a number of domestic and offshore parties also seeking a presence in this growth market of Newcastle.”
Becton developed the 175 room 4.5 star Hotel in early 2003 as part of the Honeysuckle Development. “This is a quality asset that enjoys water views and is operated by a world leading hotel operator - InterContinental Hotels Group,” said Mr Durran.
Crowne Plaza Newcastle also features the Breeze Restaurant, a bar, four meeting rooms, a ballroom, an outdoor swimming pool and approximately 36 car spaces.
Becton decided to sell the asset as they do not manage an appropriate sector fund for this specialised asset class, being hotels.