Freehold interest for one of Dubbo's busiest and more popular hotels is now available.
The Quest hotel on Bultje Street has been listed for sale on behalf of the private investors by Findex Financial Advisors.
The CBRE Hotels team has appointed Raymond Tran and Tom Gibson to market the serviced apartment hotel which opened in 2011.
The hotel is situated on a 2,029 square metre landholding and is subject to a long-term lease under the national Quest branding.
Mr Tran said Quest's quality brand offering and substantial, long-term lease would be a considerable drawcard for investors.
"The property is one of the leading accommodation offerings in Dubbo and is one of the city's few nationally branded hotels," Mr Tran noted.
"With a current rental yield of 8 per cent under a strong covenant, this Quest Dubbo opportunity will be a good litmus test of the hotel investment market, Quest Dubbo will provide an incoming investor with a significant yield premium to it's capital city cousins and one that is substantially above the current cost of debt."
The hotel benefitted from a refresh in 2019 with upgrades to the bathrooms, kitchens and balconies.
It comprises of 42 rooms - spanning one, two and three-bedrooms - with a restaurant and conferencing space also available.
CBRE's Mr Gibson said the hotel's location would be another buyer drawcard, with $5.3 billion in investment and construction projects earmarked for the region in the next six years according to Dubbo Regional Council.
"The hotel benefits from a strong commercial support base with numerous medical government, agricultural and education facilities in the area," Mr Gibson noted.
"This will ensure that Dubbo will remain the significant commercial and retail hub of the west, underpinned by the fact that- outside of regional coastal markets - Dubbo recorded the strongest growth rate in NSW house prices of 8.7 percent in the six markets to September 2020."
The expressions of interest campaign for The Quest closes April 1.
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