The University of Tasmania has announced its decision to sell its two central Hobart CBD hotels, Mid City and Fountainside.
UTAS purchased Mid City for $23.5 million in 2018 and Fountainside for $18.76 million in 2019 in response to the demand for student accommodation needs while a new purpose-built 422-bed Melville Street facility was built.
In an email to staff seen by Pulse, Deputy Vice-Chancellor Craig Barling said the decision to sell the properties was “made following careful analysis of our expected future demand for student accommodation”.
“Currently our accommodation in Southern Tasmania is at 78% capacity across the Sandy Bay accommodation, where up to 667 students can reside and the Hobart CBD, which has capacity to accommodate up to 868 students,” he said.
“Given the developments in the international student market since COVID, including the Australian Government’s recent reduction in student visa approvals, it is highly unlikely that international student demand will return to pre-COVID levels.”
“Current capacity in Sandy Bay and the CBD is sufficient to support the student experience we seek to provide through our statewide accommodation.”
Fountainside was leased to the State Government in 2020 for use as a COVID quarantine hotel and the Department on Health continues to use it to provide accommodation for health workers.
In late 2021, the Mid City was leased to Vision Hotels, who operate it as commercial accommodation.
“Upon the sale of these hotels, the proceeds will be invested in upgrading the University’s teaching, learning and research facilities, in particular the redevelopment of IMAS Taroona,” Barling wrote.
“Our buildings are vital because of what happens within and around them. We are committed to providing our students, staff and the broader community with the best possible education.”
The hotels will be put on the market seeking expressions of interest on Thursday.
