Each stapled security in Waratah Hotel Group comprises one unit in Waratah Hotel Fund ARSN 123 286 304 and one share in each of the Companies – Waratah Hotels Limited ACN 117 204 225 and Waratah Hotels No. 2 Limited ACN 619 064 998.
The Fund holds the land, buildings, headless, gaming and liquor licence. These assets are held by the Custodian of the Fund. The Companies own the operating businesses, associated assets and employee all the employees of the group.
Diplomat Motel, Alice Springs, Northern Territory
We are pleased to announce that the Group has entered into a contract for the sale of the Diplomat Motel in Alice Springs Northern
Territory for total consideration of $15.0m. Settlement of the transaction is expected to occur in August 2022.
The Diplomat Motel was acquired by the Group in September 2017 for total consideration of $9.65m. During the 5 years of ownership,
management has significantly improved the offer to patrons which has resulted in the Motel generating solid growth in cashflow.
The price represents a strong return for investors and takes advantage of the buoyant market for regional hotels. The sale price
represents an 8% premium to the Directors valuation of the hotel as reported in the Group’s 31
st December 2021 financial statements.
The Fund manager is confident that it can now deploy some of the funds generated from this sale into new hospitality assets that will
offer stronger growth prospects for its unitholders going forward.
The Group will pay the June 2022 quarter distribution of 2.0c per unit to investors this week. The Group has paid quarterly distributions
consistently for more than 5 years with the only exception being the March and June 2020 quarters when distributions were not paid
due to the impact of Covid-19.
As previously advised, the Group will also be paying a special distribution to unitholders for the 2022 financial year. This amount will be
determined and paid once the Funds full FY2022 year results are finalized in the coming weeks