Toronto-based Brookfield Asset Management has acquired the 146-room Hotel X Brisbane Fortitude Valley, Vignette Collection in Brisbane for a reported price of approximately 90 million Australian dollars ($57.8 million), according to newspaper Australian Property Journal.
The seller is Brisbane-based Pointcorp Development Group, which opened the hotel in the bustling Fortitude Valley district of the city in February 2021.
According to CoStar data, Vitale Resorts is the parent group owning the hotel. IHG Hotels & Resorts operates the property within its soft brand Vignette Collection.
Brisbane, Queensland, is a market of interest to investors and developers ahead of the city hosting the 2032 Olympic Games and Paralympic Games from July 23 to Aug. 8.
IHG announced in May it is bringing its Kimpton Hotels & Restaurants brand to the city in 2028. A deal with developer Kokoda Property will result in a 155-room hotel in Brisbane’s Teneriffe neighborhood, part of a $1.5 billion mixed-use development adjacent but east of Fortitude Valley. IHG has 53 hotels and eight brands in Australia. There are a further 19 in the pipeline, including the Kimpton hotel.
According to CoStar hospitality data, events in Brisbane in September — such as the Brisbane Festival and an Australian Football League elimination game — produced all-time highs in the city for the month of September in average daily rate and revenue per available room. In year-over-year terms, ADR for that month increased 1.7% to AU$236.64 and RevPAR increased 5% to AU$185.82.
Occupancy in the same period increased 3.3% to 78.5%.
In an October report from Statista, as of June, “Brisbane was home to one of the highest concentrations of luxury hotels in Australia, with just under 40% of the hotels falling into the luxury category. Brisbane's hotel mix also includes a significant proportion of midscale and upper-midscale options, accounting for about 36% of the city’s total hotel landscape.”
The Queensland Government reports that 25 million domestic overnight visitors came to the state across full-year 2023, which contributed AU$31 billion.