Sydney-based Fifty Group has made its first move into the ACT, buying two suburban Canberra hotels with 137 rooms between them: the Garden City Hotel in Narrabundah for $13.7 million, and the long-running Statesman Hotel in Curtin.
Both properties are set to be upgraded. The deal is a good example of a trend we are seeing across Australia: hotel investors buying established suburban properties on large sites, where they can add value through refurbishment, better operation and, eventually, the land itself.
The deal at a glance
- Buyer: Fifty Group (Sydney), in its first ACT purchase
- Hotel 1: Garden City Hotel, BW Signature Collection, 55 Jerrabomberra Avenue, Narrabundah
- Price: $13.7 million freehold
- Rooms: 73, plus a restaurant, function space and pool
- Site: about 6,644 sqm, roughly 6 km south-east of the city
- Hotel 2: Statesman Hotel, 14 Theodore Street, Curtin
- Price: not disclosed
- Rooms: 64 suites, plus a bar, bistro, sports bar, bottle shop, café and function space
- Combined: 137 rooms
The Garden City Hotel
The Garden City Hotel sits on a sizeable 6,644 sqm site in Narrabundah, close to the Jerrabomberra and Fyshwick employment areas and an easy drive to the parliamentary triangle and airport. It trades under Best Western's BW Signature Collection banner and offers 73 rooms with a restaurant, function facilities and a pool.
At $13.7 million, the price works out to under $190,000 per room. That is a fraction of what it would cost to build a new hotel in Canberra today, which is part of why established suburban hotels like this attract investors with refurbishment plans.
The Statesman: a Curtin institution
The Statesman Hotel opened in 1967 and has been run by the O'Donnell family. For many locals in Canberra's inner south-west, it is better known as the local pub than as accommodation. Alongside 64 guest suites, it has a bar, bistro, sports bar, bottle shop, café and function rooms.
The site has a development story too. It was previously the subject of a 12-storey apartment proposal. That plan was abandoned after the Curtin Masterplan capped building heights at six levels, a reminder of how much planning controls shape what a site is worth and what can be built there.
Why Fifty Group is buying
Fifty Group is a Sydney-based hotel investor that has been active in regional and suburban markets. Earlier this year it sold the Mercure Rockhampton in Queensland. The Canberra purchases mark its entry into the ACT, and reports indicate a deal is being worked on for Accor to operate both hotels.
The thinking behind this is familiar to anyone watching the hotel sector:
- Buy below replacement cost. Established hotels can be bought for far less than it costs to build new ones.
- Upgrade and rebrand. Refurbishment plus a strong operator such as Accor can lift room rates and occupancy.
- Diverse income. At the Statesman, food, beverage and bottle shop trade sit alongside rooms.
- Land underneath. Large suburban sites keep long-term development options open.
Canberra's hotel market
Canberra is an unusual hotel market. Demand is driven heavily by government, defence, universities, conferences and major events rather than by leisure tourism alone. That gives it steadier weekday business than many leisure destinations, but it also means weekends and parliamentary calendars matter.
Investors have been active. Quest recently doubled its Canberra footprint by taking over Adina properties, and now Fifty Group has bought its first two hotels. The broader commercial picture is more mixed. Civic office vacancy is running above 26 per cent, among the highest on record, so investors are being selective about which sectors and locations they back.
Hotels and pubs are trading across the country
Fifty Group's purchase is one of a string of hotel and pub deals this month. Hotel syndicates, pub groups and fund managers are buying in Newcastle, Toowoomba, Adelaide, Sydney and regional Queensland. Many of these deals share the same features: established trading businesses, large land holdings and buyers with a plan to reinvest.
What it means for owners and developers
- Planning controls set value. The Statesman's six-level cap shows how a masterplan can redefine a site's potential overnight.
- Operating businesses need a story. Hotel buyers value trading history, upgrade potential and brand fit, not just bricks and mortar.
- Refurbishment is a strategy. Buying below replacement cost and reinvesting is a proven way to create value.
- Show the after. Renders of refurbished rooms, upgraded public areas and future site plans help owners, operators and lenders back a repositioning.
What to watch next
Watch for confirmation of an Accor operating agreement, the scope and timing of upgrades at both properties, and the Statesman's sale price if it is disclosed. Also watch whether more interstate hotel investors follow Fifty Group into Canberra.