Deltine buys Launceston's 49-room Sebel hotel off-market

According to the report, the Sebel is Deltine’s first purchase in Tasmania. Another Launceston hospitality sale we covered is The Commercial pub. Chief executive David Toomey told the paper the fund aims to become the nation’s largest owner-operator of motels within five years. He said nobody currently holds more than about 30 to 35 motels in Australia.

The paper frames the St John Street deal as a large off-market transaction and calls Deltine an ambitious, fast-growing investment group. Mr Toomey described regional hotels and motels as an overlooked asset class, and called the segment “a perfect segment for us to play from an investment perspective”. He said such assets sit awkwardly, slightly too small for big institutions and slightly too large for some private buyers.

The numbers

The hotel has 49 rooms and a restaurant, The Examiner reports, and it has often housed AFL teams visiting Launceston.

The paper says the 49-room Sebel began as Cornwall Square Apartments. Deltine has bought 15 Australian motels since launching in late 2024, the paper says. Mr Toomey said the fund bought those 15 in its first 18 months, and that its plan is to buy 10 a year for five years to reach 50.

On the vendor side, the report says the property opened about 22 years ago as Cornwall Square Apartments. Local couple Craig and Susan Richman purchased it in early 2015 for just under $10 million and have operated it since.

What’s next

Deltine will continue the existing franchise agreement with Accor, so the hotel keeps its Sebel branding, The Examiner reports.

Mr Toomey said the Sebel met the fund’s criteria as a four-star hotel in a regional location serving corporate business and professional travellers. Mr Toomey said the Richmans ran the hotel well and that it is in good condition and a good location. He said Deltine is very interested in buying more assets in Tasmania.