Paul Fischmann makes a classic ‘Packer move’
Paul Fischmann makes a classic ‘Packer move’
Paul Fischmann has taken advantage of the recalibration of hotel values since the start of the pandemic after buying back the Mantra Terrace Hotel in Brisbane for $2 million less than what he sold it for in 2013.
Mr Fischmann’s 8Hotels partnered with Sydney property developer Eduard Litver and business partner Jonathan Hasson to acquire the 84-room hotel at 52 Astor Terrace in Spring Hill for about $16 million.
The Mantra Terrace Hotel offers everything you need with its elegant rooms including access to WiFi (fees apply), iPod dock and Foxtel TV. With 24 hour reception, secure undercover parking and complimentary newspapers and magazines, you’ll be most comfortable at Mantra Terrace Hotel.
At its peak, 8Hotels operated about 14 boutique hotels in Australia, with more than 1000 rooms. The last of these hotels, The Felix at Sydney Airport was sold to Singapore’s Ascott REIT for $61 million in 2019 and renamed Citadines Connect. 8Hotels will open the 38-bedroom Clancy Hotel in Surry Hills next year.
According to a reports in the AFR, Mr Fischmann secured the hotel which was previously called Diamant Hotel for circa $16 million, an near 11percent discount to the $18 million he previously sold it for. Adding to these metrics, Mantra Terrace underwent a multi-million dollar renovation across its guestrooms, public spaces, and restaurant and bar earlier this year before reopening in April.
“It’s beautifully refurbished. I’ve bought it back in better condition than what I sold it for,” Mr Fischmann told The Australian Financial Review.
CBRE Hotels’ National Director Wayne Bunz noted, “The acquisition demonstrates the positive outlook Sydney and Melbourne based investors have of the Queensland economy and Brisbane as an investment destination underpinned by a range of factors, including strong net migration, unprecedented infrastructure investment and the forecast impact of the 2032 Brisbane Olympic Games.”
It’s no surprise the Hotels industry has not had a knock out past few years but, according to data analytics and marketplace firm STR who provide insights for the global hospitality industry, the latest hotel performance figures show Brisbane had an occupancy rate of just under 50 per cent for the year to October compared with 37 per cent in Sydney and 36 per cent in Melbourne. Not a bad effort in an otherwise choppy market.
It coincides with ongoing population growth in Queensland, which has led the country to interstate migration over the past five years. This existing trend accelerated during the COVID-19 pandemic, with approximately 30,000 people arriving in the state permanently in 2021.
Mr Bunz noted that confidence in the Brisbane market has been further underpinned by the major government-led infrastructure projects being rolled out over the next decade, which would create thousands of jobs and have a significant positive long-term impact on the local economy
REFERENCES
- Brisbane hotel bought back for $2m less than what it sold for in 2013
By Larry Schlesinger
- Brisbanes Mantra Terrace Hotel sold by CBRE
By The Hotel Conversation
- Mantra Terrace Hotel, Brisbane