Pelathon Management has acquired the Grand Hotel in Cairns and two adjoining sites for $8.5 million.
CBRE Hotels Director Paul Fraser and CBRE Cairns Managing Director Danny Betros negotiated the sale of the landmark Cairns hotel on behalf of private owners Runnico Pty Ltd.
Pelathon managed the hotel for 18 months under a lease agreement prior to exercising its option to buy the property outright.
Pelathon’s Managing Director Jaz Mooney said: “This is another prime example of an acquisition in a market where we believe there is a strong short, medium and long-term growth potential driven by a robust economy and a proactive local council.”
Established in 1926, the Grand Hotel is situated on a high profile, 4060sqm site opposite the Cairns Central shopping centre.
The traditional, pub-style Cairns hotel includes the well-known Croc Bar, featuring a carved crocodile bar top, in addition to 35 gaming machines and a casual lounge and dining area.
Fraser said the site also offered 176 metres of frontage to three streets, a drive through bottle shop, six adjoining retail shops and a former service station now being used as a hire depot.
“The hotel has undergone a significant renovation, including the main bar, alfresco dining areas and an upgrade of the gaming room to accommodate increased machine numbers,” Fraser added, noting that this had completed Stage 1 of Pelathon’s plans for the property.
Betros noted that Stage 2 was now well underway, including a redevelopment of the adjoining sites.
“This will maximise the highest and best use of the total site, with plans currently underway for an exciting multi-use development in the near future,” Betros said.