Challenger pays $133 million for Next Hotel in Queen Street Mall and Forever 21 secures 10-year lease

ARMED with a new brand and a $50 million plus makeover, a Queen Stree Mall hotel has been snapped up for $133 million.

The NEXT Hotel with retail which sold for $133 million

ARMED with a new brand and a $50 million plus makeover, a Queen Stree Mall hotel has been snapped up for $133 million.

Challenger Ltd yesterday confirmed the purchase of the high profile former Chifley at Lennons l which was last year rebranded and launched as a business-friendly NEXT Hotel.

Former owner and Chifely at lennons operator SilverNeedle Hospitality has a 10-year lease to manage hotel while global fashion retailer Forever 21 also has a signed up for 10-year rental agreement on the ground floor retail component of the building.

The NEXT Hotel which sold for $133 million

Dean Dransfield of Dransfield Hotels & Resorts and JLL’s Head of Retail Investments – Australasia Simon Rooney, together with JLL Hotels, advised SilverNeedle which bought the property in 2012 for $57 million.

Mr Rooney said sizeable and refurbished CBD assets were in high demand in Australia.

“CBD retail markets are going through a transformational phase, welcoming a new wave of international retailers that are expanding into the Australian market,” he said..

Before the sale SilverNeedle more than doubled the rooms in the hotel from 150 to 304 and installed business-friendly, tech-savvy features including free Wifi and external check-in and room-control options through a smartphone device.

Mr Dransfield said: “With its state-of-the-art technology and design, Brisbane’s NEXT Hotel is in an ideal position to attract business and leisure visitors.

“The rare sale and leaseback investment was highly sought-after by institutions, international investors and high-net wealth individuals as it provides simplicity, security, scale and upside as market conditions strengthen.”