The National Rugby League (NRL) has continued its diversification into hospitality real estate with the purchase of another two hotels, characteristically situated in rugby league heartlands.
These two new acquisitions represent the NRL’s fourth and fifth hotels in the past two years, now totalling investment of $110 million.
In December the industry body finalised purchase of the Ibis Styles in Port Macquarie for around $15 million from ASX-listed investment manager Elanor, which is reported to have put up around $160 million in hotel assets in an effort to rein in debt.
Brisbane’s Mantra Terrace was sold for circa $23 million by investor-developers Paul Fischmann, Eduard Litver and Jonathan Hasson.
The latest join the Gambaro Hotel in Brisbane, Mercure Sunshine Coast, and Quest in Woolooware Bay, which are all very deliberately close to home grounds of the Brisbane Broncos, Redcliffe Dolphins and Cronulla Sharks, respectively.
Now exchanged and settled, the new assets follow suit, with the Ibis a 10-minute drive from Port Macquarie’s major sports stadium, which is used extensively by the sports body league in the north coast region. Similarly, Mantra Terrace is a short drive from Suncorp Stadium, home to the Broncos.
NRL CEO Andrew Abdo has flagged revenue surplus “for reinvestment” and suggests the strategy will result in more money for core purposes, such as to clubs and players, and grassroots football, which will “future-proof the game” against impacts on other revenue streams.
Late 2024 Australian Rugby League Commission chairman Peter V’landys reported an operating surplus of $58.2 million for the year to date and stated intentions to increase the asset base.
By accumulating hotels in strong regions of the game the NRL plan to use rugby league IP and events to drive the performance of the assets, voicing expectation of generating a 10 per cent annual return on investment.
The Port Macquarie property was brokered by HTL Property’s Andrew Jolliffe, who says returns of 15 per cent or more are “absolutely achievable” in the mid-term and the initiatives stand to bring multiple benefits to the organisation.
“This investment in hard yielding assets provides the NRL with a robust investment model that has two definable features; the first being a property backed investment that will appreciate in value over time, coupled with an opportunity to vertically integrate business and revenue generation – given the strategic locations the assets acquired enjoy, with regard the NRL’s core product delivery operations.”
Sale of the Mantra Terrace in Brisbane was managed by CBRE Hotels’ Wayne Bunz.
