GA Group plans a third $100m Cairns hotel

GA Group, which has significant business interests in the Arab states, is understood to have paid up to $12 million for the Bellview Motel and Backpackers

An artist's impression of billionaire Syrian developer Ghassan Aboud's planned $100 million redevelopment of the Rydges Tradewinds hotel on the Cairns Esplanade.

Brussels-based Syrian billionaire Ghassan Aboud is planning a third $100 million Cairns hotel development, snapping up the Bellview Motel and Backpackers and an office block.

Mr Aboud’s GA Group, which has significant business interests in the Arab states, is understood to have paid up to $12 million for the Bellview Motel and Backpackers at 85-87 The Esplanade as well as the adjoining three-level Virginia House office block fronting 68 Abbott Street in a deal ­negotiated by CBRE.

The Bellview Motel and Backpackers attracted 10 formal offers but through private negotiations Mr Aboud — who is already in talks with major groups to ­manage the hotel development — increased the parcel size through the acquisition of the office block.

Mr Aboud is also adding 70 rooms to the Rydges Tradewinds hotel bringing it up to 320 rooms in another $100 million development.

Across the road from the Bellview Motel on a site in Aplin Street and Abbott Street he is planning a two-tower apartment and hotel project of about four stars on a 4000sq m site.

CBRE said GA Group’s ­Bellview acquisition was the last opportunity to acquire a development site on the prime Esplanade block.

CBRE Cairns managing director Danny Betros said the site added to GA Group’s stable of prime development projects with plans and concepts now on the drawing board for the highest and best use of the site.

“GA Group now owns clearly the best three development sites in the Cairns CBD”.

Mr Betros expected Cairns would have a shortage of quality four- and five-star hotels by 2019, given inbound tourism growth.

Meanwhile, Gary Hunt Architects have been appointed to ­design the $100m Bellview Motel development with the project ­expected to follow after the Trade­winds redevelopment and the Aplin Street Hotel project.

CBRE Hotels national director Wayne Bunz said Cairns was the best performing hotel market last year with revenues per available room — the standard industry measure of profitability — up nearly 12 per cent compared with 2015.

Mr Bunz is expecting another strong year for investment sales, foreshadowing that Cairns will ­retain its spot as the leading city for revenue per available room growth.

CBRE Hotels are also marketing the Reef House, MGallery by Sofitel in Palm Cove, just north of Cairns.

Several groups are vying to buy the five-star property.