Travelodge Resort Darwin listed for sale: Ideal for student accommodation
This property offers significant potential for repurposing into student accommodation or other short-term living solutions
Savills Australia and New Zealand, alongside Knight Frank, have announced the exclusive listing of the Travelodge Resort Darwin, presenting an exceptional chance to acquire a prime freehold hotel in the heart of Darwin City.
Located at 64 Cavenagh Street, this property offers significant potential for repurposing into student accommodation or other short-term living solutions.
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The Travelodge Resort Darwin boasts 224 rooms, including 32 townhouses, and a wealth of resort-style amenities. These include five swimming pools, the Treetops Restaurant, conference and events facilities, a gymnasium, a sun deck, a BBQ area, and 115 car parking spaces.
Its unique features, coupled with four separate street frontages, make it a standout accommodation option in the area.
Mark Durran, Managing Director of Hotel Capital Markets at Savills Australia and New Zealand, highlighted the uniqueness of the property. “The Travelodge Resort Darwin is a truly unique resort hotel in the centre of Darwin. It presents extremely well following a recent refurbishment and offers extensive resort amenities.
“This asset provides a rare opportunity for an incoming buyer to add value to an income-producing asset by repurposing or implementing a change of use.”
The 1.31-hectare site has advantageous zoning that supports near-term use as student accommodation, as well as longer-term redevelopment prospects.
With over 5600 international students currently studying in the Northern Territory, contributing around $169 million annually to the local economy, the demand for student accommodation is high.
Paul Savitz, Director, Operational Capital Markets at Savills Australia and New Zealand commented; “Darwin is already an undersupplied student accommodation market, with the highest student per PBSA bed ratio in the country, at 33 students to each bed, according to the Property Council of Australia.
“With Charles Darwin University and the State Government aiming to grow international students to 10,000 by 2030, the already severe shortfall of student accommodation will only get worse with no new accommodation to open in the near term.
“With the Travelodge Darwin being located immediately opposite the new $250m CDU City Campus, the hotel can operate as student accommodation with little modification and be ready to welcome students in time for when the campus is expected to open in the third semester of this year,” Mr Savitz concluded.
Peter McVann, Partner at Knight Frank Darwin, emphasised the impact of increased state and federal government spending on Darwin’s growth. “The new Charles Darwin University, conveniently located adjacent to the Travelodge Resort Darwin, is a prime example of this growth,” he said.
Following a recent refurbishment costing approximately $4 million, the Travelodge Resort Darwin is well-placed for future growth. “For the full year 2023, the Darwin market achieved a 33% RevPAR premium versus 2019, mainly based on ADR growth,” said Durran. “We expect occupancy to continue recovering through the end of 2024 and into 2025 as inbound international travel rebounds.”
The Travelodge Darwin is now offered for sale by Expressions of Interest, closing on July 25, at 1 pm. This sale represents a unique opportunity to invest in a versatile property with significant potential for future development in one of Australia’s most dynamic regions.
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