On Wednesday, the Pentagon Group purchased three Tasmanian hotels for $35 million, the start of what managing director Vijan Patel says will grow into a $100 million property portfolio for the organisation.
Prospect property The Olde Tudor Hotel, Bayside Inn at St Helens and Lauderdale’s The Foreshore were the three properties purchased from EBC Leisure by the hotel division of the Melbourne property development and investment firm. Combined, the three properties have 132 accommodation rooms and more than 100 staff. Pentagon will spend the next two years upgrading the three sites to bring them up to three-and-a-half-star standard. “The plan is to make them all four-star properties,” Mr Patel said.
This starts with rebranding all three properties to Comfort Inn from next week.
Pentagon Group has owned Quest Launceston for the past seven years. Patel said his Launceston-based business partner Pratik Sarsavadia told him about the three Tasmanian properties and they decided to expand. “We hope to grow this portfolio to $100 million in the next two to three years,” said Patel.
Patel said he was attracted by the hotels’ “solid income” and potential as assets.
Mr Sarsavadia has been tasked with finding more properties to add to Pentagon’s portfolio throughout the state, but he said he was most interested in Launceston.
“Over the past eight years Tasmania has continuously grown, particularly in tourism. There is a sense of opportunity that is just going to grow,” he said.