UTAS searches to find long-term tenant for Midcity Hotel

The University of Tasmania is trying to find a long-term tenant for an inner-city Hobart hotel building it bought three years ago amid a surge in demand for student accommodation. LATEST >>

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THE University of Tasmania is trying to find a long-term tenant for an inner-city Hobart hotel building it bought three years ago amid a surge in demand for student accommodation.

In 2018, UTAS purchased the Midcity Hotel on the corner of Elizabeth and Bathurst streets as the need for student housing soared.

But the Covid-19 crisis and indefinite closure of international borders has significantly reduced this demand.

More than 400 new UTAS student apartments also opened on nearby Melville St earlier this year.

As a result, UTAS has announced it will advertise for expressions of interest for a five-year lease arrangement for the Midcity building.

UTas buys Midcity Hotel

“The purchase of the Midcity Hotel was designed to help us bridge the unmet need until our new apartments came online,’’ a UTAS spokesman said.

“Now we have unused capacity in our student accommodation pool.

“We explored a range of options for the Midcity, including conversations with a number of parties about whether it could be used for social housing, but indications are that the building is not appropriate for that purpose.

“The Midcity is more or less ready to operate as a hotel, so we’re checking the market to see if there is an operator who is interested in the opportunity.”

UTAS said the property featured 122 rooms, a bar, lounge, and conference centre.

The university also owns the Fountainside Hotel building for the purpose of student accommodation.

In March last year, that site was made available for the purpose of quarantine as the coronavirus pandemic hit.

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