By Andrew Starke
The Toga Group, owners of the Vibe, Medina and Travelodge hotel brands, have acquired the high profile Mansions Hotel in Kings Cross for $16.75 million.
The property was put on the market in August last year and was initially expected to fetch in the region of $25 million.
It is expected that it will be redeveloped and run as managed apartments.
Mansions is the last of the failed Landmark Leisure Group properties to be sold after the Peakhurst Inn, Vegas Hotel Kings Cross and the Oxford Hotel, Darlinghurst all found buyers last year.
The five storey hotel, which has been run by managers and receivers Ferrier Hodgson for the past two years, occupies an 888 square metre corner site at the intersection of Bayswater Road and Kellet Street in Kings Cross.
CB Richard Ellis’ Joel Fisher and Daniel Dragicevich steered the sales campaign on behalf of the receivers.
Fisher said the hotel represented one of the most significant redevelopment opportunities currently available in Kings Cross, with the added benefit of a well established cash flow from the existing hotel.
“The site would suite a redevelopment similar to the one undertaken by Toga adjacent Hampton, which generated unseen demand by purchasers and investors alike,” he said.
“Over $60 million worth of Hampton’s property was sold off the plan in just six hours.”
Mansions Hotel includes a floor plate of approx 4,200sqm over five levels, a modern public bar, a recently refurbished bistro, dedicated gaming lounge with 30 poker machines and a separate bottle shop.