The Laundy family have furthered their coastal acquisitions and partnership model, buying the Mercure Centro Hotel with Mr Port Macquarie, Alistair Flower, for around $25 million.
Rated 4.5-star, the five-level 72-room Hotel is in the heart of Port Macquarie’s commercial, retail and entertainment precincts, offering broad facilities including an extensive restaurant and bar, swimming pool and day spa, expansive conference area, excellent rooftop area popular for weddings and functions, secure underground parking for 86 vehicles, and two street level retail outlets.
Since opening in 2007 it has been under franchise agreement to Accor Hotels, under the Mercure brand.
Tourism is seen at an all-time high in the region, offering opportunity and blue sky in hospitality. Port Macquarie’s diverse economic profile takes in its university, hospital and major government infrastructure investment, bringing major upgrades to the highway and airport, alongside the new $30 million Glasshouse Convention and Entertainment Centre.
What the Mercure Centro of Port Macquarie has not been in position to do previously is engage the fast-growing community.
A new partnership involving Rich-lister patriarch Arthur Laundy, with son Stu and son-in-law Nick Tindall, bulks up the family’s regional hospitality offerings, which already counts the Sofitel in Noosa, Crowne Plaza Terrigal, and Novotel in Manly.
Stu Laundy, who has taken on acquisitions for the family’s property empire, says this new opportunity was “too good to refuse”.
“This coastal property intersects perfectly with our national investment objectives, and adds deftly to the growing portfolio,” says Stu.
“We decided to team up with local hospitality operator Alistair Flower, who is so very highly regarded in the region.”
Flower, who took his corporate experience coastal a few years back, and has been busy building a pub empire in and around Port Macquarie, is today also head of the Liquor Accord and local delegate for the AHA. He interacts with the Port’s Chamber of Commerce and burgeoning local business sector.
Partnership in an accommodation hotel is a first for Flower’s growing portfolio, and comes as the region looks to “an extremely prosperous outlook”, just four hours north of Sydney, with local competition in the space limited to the nearby Rydges-managed Sails resort.
The Mercure will simultaneously complement Flower Hotels’ plans in the Port, such as the Little Shack bar, in partnership with Paul Shultz, providing the group greater ability to cater to functions, while also benefitting from the pub group’s resources, chefs and staff, and expertise in adding some appeal to the Hotel’s bar.
The freehold going concern deal was brokered through HTL Property’s Andrew Jackson, Andrew Jolliffe and James Carrick, on behalf of private owner HLF P/L.
“The mid-market accommodation sector has shown demonstrable improvements in trade over recent months, and none stronger than true coastal city centres, which very efficiently capture corporate and leisure travellers alike,” notes Jolliffe.
The new owners reveal the site will remain a Mercure, through Accor, which they see as the best fit, and praise the French multi-national’s systems and procedures.
Mercure’s brand equity will serve it well amid the influx of tourism – an industry that shows the strongest recovery prospects after being one of the hardest hit sectors, facing “a virtual tidal wave of pent-up demand”, particularly from the domestic market.
Tourism Research Australia (TRA) suggest domestic overnight trips will increase 21 per cent in the coming year and surpass pre-pandemic levels by the following year, with increased visitor expenditure, forecast to reach $127.7 billion – well above the previous peak, in 2019-2020 – by FY2026.
But while Accor is a strong accommodation brand, the new keepers are eager to expand all horizons.
“We’ll work with them and leverage off their experience, but I’ve got the local community engagement experience that I can bring to the table,” Flower told PubTIC.
Incorporating the big brand, with a local touch, seems to benefit all involved.
“We’re diversifying our hospitality offering, and our approach,” adds Flower.
“It’s a double-down on Port Macquarie. We’re all in!”
