Canberra’s Capital Executive Apartment Hotel has changed hands for the first time in 22 years in a complex deal that has involved a large-scale unit buy-out.
The sale to the Madison Hotel Group will see the property undergo extensive refurbishment before relaunching under its new brand as Madison Suites Canberra.
The group, run by family business partners Brett Morgan and Beverley Clench, bought the management rights to the 87-unit apartment hotel on Northbourne Avenue along with 36 freehold units, which the vendor had acquired over a number of years.
The sale was negotiated by broker Russell Rogers and managing director Ian Crooks, of Resort Brokers Australia, on behalf of Stanbritt Pty Ltd, headed by long-time director and sole proprietor Jim Stanwell,
Rogers says the sale took almost 12 months to conclude as it hinged on the Madison Hotel Group seeking to buy the balance of 51 units in the building from individual investor owners.
“They independently secured 48 of the other units, which allowed the overall purchase to be finalised,” he says.
“It was a very satisfying result, particularly as Canberra is one of Australia’s most tightly held accommodation markets.”
The sale price was not disclosed.
Madison Hotel Group, which owns a number of properties in Canberra, Sydney and regional NSW, operates short-term and permanent residential accommodation businesses.
It also owns the Chifley Plaza Hotel in Townsville, North Queensland, now being refurbished for planned rebranding as Madison Plaza Townsville.
Resort Brokers’ Ian Crooks says the unusual “hybrid” Canberra sale would see the Capital Executive Apartment Hotel revert from a management rights operation to a more traditional hotel-style establishment under largely single ownership.
“It is a prime property on a large 2040 square metre corner block in Canberra’s major tourism and accommodation precinct, just five minutes’ walk to the CBD and on the light rail route,” he says.
“It has been consistently recording occupancy rates of more than 80 per cent and there is strong potential to further grow the business.
“The buyers are experienced operators who will usher in a new era for the property with refurbishment starting immediately,” Crooks says.
Accommodation is a mix of studio apartments and one-bedroom spa suites, while facilities include a business centre, gym, sauna, two spa pools, 24-hour undercover security parking, and an onsite licensed restaurant, leased to an operator.