CAIRNS COURTHOUSE HITS MARKET IN LANTERN'S SALE BLITZ
Written on the 15 June 2016
THE Cairns Courthouse Hotel is the latest in a string of divestments for Lantern Hotel Group (ASX:LTN) as part of the Sydney-based operator's transformation plan.
Lantern sold GPO Hotel in Brisbane for $5.25 million and Bowral Hotel in NSW for $6.35 million last month to focus on metropolitan Sydney assets.
Five non-core properties have been divested in the last nine months, with another two sales expected to be completed in coming weeks.
CBRE Hotels agents Glenn Price, Daniel Dragicevich and Paul Fraser have been appointed to market the Cairns Courthouse Hotel.
"The chance to purchase the hotel provides a fantastic opportunity to acquire a premier pub offering with steady trade and potential upside in what is currently one of the key economic and tourist regions in Queensland," Price says.
The licensed venue is located in the Cairns CBD, close to the foreshore and pier, Reef Casino and a number of accommodation options.
It will be sold as a going concern and includes the Commercial Hotel License and 35 Gaming Machine Authorities.
Fraser says the sale is an opportunity for investors to capitalise on an undersupply of quality pubs available in the market.
"There haven't been to many quality hotels in large regional centres available outside the south-east region of Queensland in recent times," Fraser says.
"This hotel is recognised by many across Queensland as being an institution in Cairns and we are expecting strong interest from private pub groups, corporate groups and private publicans."
Lantern is yet to confirm whether it will also sell Central Hotel in Bundaberg, which remains as its final hotel in Queensland.
The national expressions of interest campaign is scheduled to close on July 13.