Darwin TraveLodge snapped-up by interstate investor in major CBD property purchase

An interstate investor has just snapped-up a juicy Darwin CBD block for less than it sold in 2006. Read where and who bought it.

Western Australian-based hotel operator Prendiville Group has acquired Darwin CBD’s TraveLodge Resort after a highly-competitive six-week global advertising campaign that attracted more than 100 inquiries.

The property is under contract with settlement expected sometime this month.

The reported sale price was $23m, less than when it changed hands for the last time in 2006.

Property Group Toga bought the TraveLodge in December 2006 for $24.5m, which was then reconsolidated under the Toga Far East brand for $31.2m in October 2013.

Local realtor Peter McVann from Knight Frank Northern Territory teamed with Mark Durran and Paul Savitz from global agency Savills to sell the Cavenagh Street property on behalf of TFE Hotels.

TraveLodge Darwin is under contract.

A corner property in the heart of Darwin city and recently refurbished, TraveLodge includes 224 hotel rooms including 32 self-contained townhouses, multiple swimming pools, Treetops Restaurant, conference and event facilities, a gymnasium, sun deck, BBQ area and 115 carparking spaces.

This masthead reported in June the high-profile sale was underway, capitalising on a $4m pre-Covid renovation that upped the quality of interiors and fittings.

There were 130 inquiries and 10 bids for the property.

The island site is bordered by Woods, Lindsay and Cavenagh streets with exposure to Garramila Boulevard and opposite Charles Darwin University’s new CBD campus

It was speculated the TraveLodge could be used for student accommodation, with Prendiville’s website showing a diverse portfolio of hotel and resort assets with a focus on destination and dining.

TraveLodge Darwin

With the exception of accommodation in Townsville and Mt Isa, Darwin’s TraveLodge will be the only non-Western Australian asset in the group’s portfolio.

Peter McVann said Prendiville have 20 interstate outlets and were looking to diversify into the Northern Territory.

“Very rarely do you get 1.3ha in a Central Business District of an Australian capital city with three street frontages and with the opportunity to develop in stages,” he said.

“It has a lot of flexibility for Prendiville to refurbish and reposition.

“They’re looking at alternative classes of accommodation. With Charles Darwin University a walk across the road we’ll have students from interstate and overseas which diversifies the economy and helps tourism.

“They’re families need somewhere to stay when they visit. It’s a logical move for Prendiville to look up north with Defence, oil and gas and other workers requiring accommodation, because Darwin hasn’t got any.

Knight Frank’s Peter McVann

“It’s cheaper to refurbish than build from scratch, which is why the CBD is experiencing limited non-government residential developments.”

Savill’s spokesman Mark Durran said the Travelodge’s CBD location had influenced their decision to buy.

“The hotel provides a wide offering of rooms and facilities in an ideal location in the Darwin CBD,” he said.

“With over 130 inquiries and 10 bids lodged throughout the high-profile campaign, investors were attracted by the size, scale and potential of the property as well as the substantial 1.31-ha city centre land holding.

“The acquisition of this significant parcel in the Darwin CBD offers Prendiville Group strong growth potential for immediately located accommodation and investment opportunity in the medium to long-term.”

Prendiville has been contacted for comment, but they are expected to continue operating TraveLodge as a going concern.

Originally published as Darwin TraveLodge snapped-up by interstate investor in major CBD property purchase