Near-new Mantra hotel takes flight in Canberra

One of Canberra’s newest hotels, the Mantra MacArthur, has been listed for sale amid a simmering local accommodation market.

The hotel, leased to AccorHotels subsidiary the Mantra Group, the property also includes the adjacent Midtown Parking Station and is positioned opposite the MacArthur light rail stop.

With international short-haul flights recently introduced at Canberra Airport, with direct routes to Doha and Singapore, the city is experiencing growth in its hotel market, with the revenue per available room increasing by 4% in 2018 compared to the previous year.

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In the 2018/19 State Budget, the government forecasts overnight visitor spending in Canberra to hit $2.5 billion annually by 2020.

The Mantra MacArthur has 176 guest rooms, a restaurant, bar, gym, retail tenancies, conference facilities and 62 underground parking spaces, and is being marketed through JLL Hotels and Hospitality Group vice president Andrew Langsford and Savills Hotels managing director Michael Simpson.

Langsford says the lease to AccorHotels provides a secure income stream, with the potential for further development.

“With excellent real estate fundamentals, certainty of income and several value-add opportunities, the sale of the Mantra MacArthur and Midtown Parking Station presents a coveted investment opportunity in one of Australia’s best performing markets,” he says.

Simpson adds that the city’s “outlook for continued economic growth, together with the ability to acquire an asset with diversified income streams in a strategic location amongst Canberra’s best demand drivers will attract strong interest from both domestic and international investors.”