Zagame group to sell Vanuatu casino resort
Australian hoteliers and hospitality group Zagame Corporation is selling Vanuatu’s Grand Hotel and Casino amid heated investor interest in resort-style accommodation.
The 74-room waterfront property is considered one of Vanuatu’s best casino and hotel complexes.
Spanning eight levels and 10km from Vanuatu’s airport, the Grand Hotel and Casino sits in Port Vila’s business and entertainment district and draws income from its accommodation, gaming and food and beverage offerings.
Commercial Insights: Subscribe to receive the latest news and updates
CBRE’s Rob Cross, who is marketing the property with colleague Andrew Jackson, says Zagame Corporation is offloading the property to focus on its extensive Australian pub and accommodation portfolio.
Cross says he expects most investors interest to come from other Australian investors.
“We’re expecting considerable interest, predominantly from Australian and New Zealand,” Cross says.
“The campaign provides an opportunity to acquire the best hotel and casino in Vanuatu, which is currently owner operated but is being offered with vacant possession.”
“While the hotel and casino has enjoyed trading growth in recent years, the introduction of a professional management company with a strong brand reputation could lead to further trading upside.”
The four-star hotel was built on Port Vila Harbour in 2003 and has views towards Irikiki Island.
Its casino has 15 gaming tables, 136 poker machines and a VIP gaming room on the top floor. It also features a restaurant, conference rooms, four bars, a pool and a spa.
Jackson says investors are increasingly looking to leisure-based assets, with 2016 seeing hotels including a Cairns trio – the Rydges Tradewinds, Novotel Oasis and Rydges Esplanade, which sold for a combined $122 million – among those that transacted.
“In the case of the Grand Hotel & Casino, the property is poised to benefit from the Vanuatu Tourism and Infrastructure Project, which is funded by the New Zealand Aid Program,” Jackson says.
