Canberra-based Doma Group has entered the Brisbane property market, snapping up a Queensland government-owned development site at South Bank for about $17 million.
Doma Group’s general manager of development Gavin Edgar confirmed the purchase and said Doma would build one of its specially branded Little National Hotels on the site.
“The proposed LN Hotel, South Bank, Brisbane [is] the latest evolution from Doma Hotels,” Mr Edgar said. “It will comprise 160 rooms and offer affordable luxury in a compact room.”
The 1600-square-metre site at 133 Grey Street was held by Queensland Rail as surplus land. Colliers International’s Tom Phipps and Jason Lynch negotiated the sale but declined to comment on what is believed to be a record price for that area. One bidder in the hotly contested sale process said the property was likely to have been purchased for more than $17 million, or well over $10,000 a square metre.
The sale of government land is also a good sign the new Labor government is unlikely to interfere with the sale of major government-owned parcels of land currently under negotiation.
LN Hotel South Bank Brisbane will be the second LN Hotel to be developed by Doma, with the LN Hotel Canberra due to open in September, about 500 metres from Parliament House.
“This is the first big move into another capital city, ” Mr Edgar said. “We feel there is a niche market for this type of hotel offering, based on how well it has been working in Europe.
“We do hope to take this hotel into other capital cities in the future.”
Colliers International’s managing director of hotels, Stephen Burt, said there was an international movement towards the smaller luxury hotel concept known as “affordable luxury” or “budget luxury”.
“It has been spearheaded in Europe and is extending to North America and now Australia. The innovative approach to hotel design is being watched with intense interest by international hotel operators and owners.”
Doma will continue to look for other residential and mixed-used projects across Australia. “We are going into other markets besides Canberra to diversify risk,” Mr Edgar said.