Peter V'landys - New NRL/ARLC Chairman

[Murishido]

The financially-flying NRL has built its asset base to nearly $110m after buying hotels in Port Macquarie and Brisbane this week.

It is part of the NRL’s bold move to establish an asset base worth $300m.

The ARL Commission acquired the Ibis Styles Hotel in Port Macquarie for $15.5m and a Mantra Hotel in Brisbane for around $22m.

The NRL has already purchased:

- Mercure Kawana Waters on Queensland’s Sunshine Coast for $20m.

- Quest Hotel in Sydney’s Woolooware for $20m. The NRL owns the Quest at Woolooware but doesn’t operate the hotel, leasing it back to Quest.

- Gambaro Hotel – rebranded the Beetson Hotel – in Brisbane for around $30m.

ll revenue streams within rugby league have increased. This from a game which ran at a loss of nearly $20m just nine years ago.

https://www.dailytelegraph.com.au/sport/nrl/arl-commission-acquires-accommodation-properties-in-port-macquarie-and-brisbane-as-asset-base-grows-to-nearly-110m/news-story/77ccd5c487c37d5439d330dc3d44dc9c

Worth noting most of that loss repair comes from giving less money to local rugby league.

Investing in hotels over the game seems an odd decision.

 

[Mother Nature's Son]

Pretty clear from the last tv deal News ltd still pulls the strings at NRLHQ.
DAZN hopefully buying out Foxsports could be the best thing ever in finally cutting the binds to that scab of an organisation. I feel dirty every time my Kayo sub goes out!

I`m apprehensive about DAZN, they`re haemorrhaging cash and continue to pay overs for everything, the owner seems just to have a buy-for-buy sake mentality and I`m not sure what his end game is given the low-margins in streaming. I hope League doesn`t get caught up in something messy. News that the Saudi`s are looking to buy into DAZN suggests that there`s a lot to play out though.

 

[Wb1234]

The financially-flying NRL has built its asset base to nearly $110m after buying hotels in Port Macquarie and Brisbane this week.

It is part of the NRL’s bold move to establish an asset base worth $300m.

The ARL Commission acquired the Ibis Styles Hotel in Port Macquarie for $15.5m and a Mantra Hotel in Brisbane for around $22m.

Unbelievably, the game was on the brink of insolvency when the NRL competition shut down during Covid just four years ago.

“The game has never, ever been in a stronger financial position. Like all smart businesses, you need to diversify your income streams and the NRL is doing that,” said Raiders chief executive Don Furner.

The NRL has already purchased:

Mercure Kawana Waters on Queensland’s Sunshine Coast for $20m.
Quest Hotel in Sydney’s Woolooware for $20m.
Gambaro Hotel – rebranded the Beetson Hotel – in Brisbane for around $30m.
“This continues our objective to have $300m in revenue-generating assets,” said ARL Commission chairman Peter V’landys.

“We have (just) bought two hotels – the Ibis and Mantra in Brisbane. We now have five hotels.

“The game was exposed during Covid as having no assets and we needed to correct that as a matter of extreme urgency.

“We are doing that slowly by trying to get really good priced investments that are basically under the market value, and that’s what we have been doing.

“The Mantra is close to the Brisbane CBD and costed a little more than Port Macquarie but it will be a good investment. Already the Beetson Hotel has gone up in value.”

The NRL owns the Quest at Woolooware but doesn’t operate the hotel, leasing it back to Quest.

The four-star, 45-room Ibis attracted nine formal offers with a sale price of $344,444 per room and a 7.4 per cent initial yield. It is located on the beachfront headland at Stewart Street.

This masthead has been told the property was exchanged and settled within eight weeks of initial expressions of interest.

There are suggestions that NRL may look to refurbish and rebrand the Ibis.

It is understood the Ibis deal was completed through brokerage agency HTL Property, whose managing director and co-founder is Andrew Jolliffe, a Sydney Roosters director.

The Mantra is believed to be the Mantra Terrace Brisbane, which was for sale. The Mantra Terrace underwent a full refurbishment in 2021 and offers 85 guest rooms.

All revenue streams within rugby league have increased. This from a game which ran at a loss of nearly $20m just nine years ago.

The 68-room Beetson Hotel on famous Caxton Street was acquired by the NRL in 2022.

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[Wb1234]

Seven percent is a decent starting yield

Commercial properties have a much higher return than stadium investments

Seems like the arlc are going for boutique buys to to 30 million rather than putting all their money in a few large assets

They should also look at shopping centres they have excellent development potential on top of the high rental returns

Buying another hotel near / on the beach isn’t a bad thing though

 

[Perth Red]

Worth noting most of that loss repair comes from giving less money to local rugby league.

Investing in hotels over the game seems an odd decision.

last years spend on grassroots was still $12mill less than in 2019, adjusted for inflation thats about the price of one hotel a year.
Good the NRL is building assets and alternate revenue streams, long overdue, but hopefully we will see grassroots funding next year (at least in two states) with the doubling of the NSW and QRL grants at an all time high. Vlad and Abdo are money men so at least they have been able to deliver much healthier looking books.

 

[Perth Red]

All revenue streams within rugby league have increased. This from a game which ran at a loss of nearly $20m just nine years ago.

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Bit of a furphy statement, in 2015 the game ran at a $12mill loss but across 2018 and 2019 it was at a $76mill surplus (pre Vlad chair)

 

[ash the bash]

Hope the plan is not to have 300mil just in boutique hotels. That is not diversifying, allocating some investments in funds would also be good.

 

[AlwaysGreen]

I assume the NRL consulted noted financial guru wbtiktok before making these investments?

 

[SirPies&Beers]

I assume the NRL consulted noted financial guru wbtiktok before making these investments?

yes and they had west aussie parliament state member perth reds to review the docs before approvals

 

[Brutus]

Seriously not a fan of PNG as the 18th team Pete.

 

[SirPies&Beers]

Hope the plan is not to have 300mil just in boutique hotels. That is not diversifying, allocating some investments in funds would also be good.

technically the bought land and in brisbane its inner city land. one day an investor/developer might want to buy said land off nrl to knock down whatever exists there and building something bigger.

 

[titoelcolombiano]

last years spend on grassroots was still $12mill less than in 2019, adjusted for inflation thats about the price of one hotel a year.
Good the NRL is building assets and alternate revenue streams, long overdue, but hopefully we will see grassroots funding next year (at least in two states) with the doubling of the NSW and QRL grants at an all time high. Vlad and Abdo are money men so at least they have been able to deliver much healthier looking books.

NSWRL and QRL funding is part of grass roots funding, plus the NRL got Dolphins to commit $2M per year as a condition to entry so all up there probably isn't $12M short of 2019.

 

[Mother Nature's Son]

I assume the NRL consulted noted financial guru wbtiktok before making these investments?

Seems tiktok is recommending getting into shopping centres same time as the Lowy`s are getting out. Smart move.

 

[Captain Apollo]

Seriously not a fan of PNG as the 18th team Pete.

The worry about it is whether it will be self sustaining by the time the money runs out for the Australian Government. Yes, that's 10 years away, but with due respect to PNG, its not necessarily a financially rich nation.