Peppers Waymouth Hotel owner puts property on the market

The owner of one of the state’s key medi-hotels has put the property on the market, seeking offers of more than $75m.

The owner of the Peppers Hotel on Waymouth Street is making another attempt at offloading the property, hoping to secure offers in excess of $75m.

The CBD property has been used as one of Adelaide’s main COVID-19 medi-hotels since August, where new arrivals into South Australia spend their quarantine.

However Sydney-based real estate group HTL Property, which is managing the sale process, expects local and offshore groups to show interest in the property as the state emerges from the pandemic.

“The hotel is a highly regarded, consistent performer within the Adelaide market, and we expect this trade to continually grow given the surrounding demand drivers including Rundle Mall, Adelaide Oval, the city’s financial district incorporating multiple other tourist offerings,” HTL Property director Nic Simarro said.

“With very few hotels situated in the core of Adelaide’s CBD, we anticipate strong enquiry from domestic and offshore investors seeking a footprint with regard Adelaide’s luxury accommodation market.”

Peppers Waymouth Hotel in the CBD became SA’s third medi-hotel Picture: NCA NewsWire / Naomi Jellicoe

Melbourne-based Mattioli Group took over the site in 2000 and converted the existing office building into a hotel two years later.

The hotel comprises 202 rooms, as well as conferencing facilities, an indoor pool and a range of food and beverage outlets.

It became the state’s third medi-hotel in August as the impacts of the COVID-19 pandemic escalated.

An official review last year found poor ventilation in the hotel may have caused a virus leak, sparking the state’s worst virus cluster and triggering last year’s snap statewide lockdown.

The Mattioli family has made several attempts at selling the property over the years, most recently in 2013, and before that in 2011 when offers in excess of $60m were expected.

However on both occasions a buyer could not be found.

Peppers Waymouth Hotel comprises 202 rooms, as well as conferencing facilities. Picture: Supplied

Its latest listing comes amid a series of recent hotel openings in Adelaide’s CBD, including the Crowne Plaza on Frome Street and the Hotel Indigo on Market Street near Chinatown.

A new Sofitel hotel will open on Currie Street later this year, while other brands including Marriott and QT Hotels have also flagged intentions to enter the Adelaide market.

Mr Simarro said the strong interest showed Adelaide remained short on quality hotel accommodation, while very few hotel properties had changed hands in recent years.

“Commensurate with a tightly held marketplace, there have been very few transactions in Adelaide over the past five years – in fact with only four significant accommodation hotel assets changing hands since 2016.”

An international expressions of interest campaign for the property closes on May 19.