The Mercure Centro Hotel is a 4.5 star, 72 room corporate hotel located on William Street in Port Macquarie's commercial, retail and entertainment precinct.

The property has been owner occupied and indexed to a franchise agreement in place to Accor Hotels, under the Mercure brand, since the hotel's opening in 2007.

The recent off-market transaction, brokered by HTL Property, saw long-term owner HLF Pty Ltd sell its freehold going concern hotel to market leading hoteliers, the Laundy Hotel Group.

"Whilst not housed in the same equity structure as our other beachside accommodation assets in Noosa, Manly and Terrigal; this coastal property intersects perfectly with our national investment objectives, and adds deftly to the growing portfolio," Stu Laundy said.

The sale will also see the Laundys team up with local hospitality operator Alistair Flower. Flower Hotels operates the Settlers Inn Hotel, Fernhill Tavern, Long Flat Pub, Beechwood Hotel, Lake Cathie Tavern, Little Shack Kiosk and Hastings Hotel.

It is the first time the business has branched out from the hospitality sector. Managing director of Flower Hotels Alistair Flower said the sale is a joint partnership between the Laundy family and his business.

"The hotel will be operated locally by Flower Hotels," he said.

"The Laundy's have extensive experience in the accommodation sector and moving into this sector is a first for our business.

"We are experienced in hospitality and are excited to branch out into accommodation as well."

The Mercure Hotel will continue to operate under a franchise agreement with Accor Hotels.

"We have decided to team up with local hospitality operator Alistair Flower, who is so very highly regarded in the region," Mr Laundy said.

HTL Property managing director Andrew Jolliffe said the mid-market accommodation sector has shown improvements over recent months.

"The Port Macquarie accommodation market enjoys an extremely prosperous outlook with virtually no new supply; and an enviable variety of demand drivers that we submit will continue attracting investors and tourists to the region," he said.

"The mid-market accommodation sector has shown demonstrable improvements in trade over recent months, and none stronger than true coastal city centres, which very efficiently capture corporate and leisure travellers alike."

Constructed over five levels, the hotel offers a range of facilities, including an extensive restaurant and bar, licenced rooftop leisure and event area, an expansive conference area, secure underground parking for 86 vehicles, swimming pool and day spa; plus two retail outlets on the ground floor.

Mr Flower said he has plans to expand the hotel's hospitality services.

"We are looking forward to expanding the food and beverage component of the hotel including the ground floor level which will be a cafe and bar area," he said.

"The restaurant has mainly operated for guests staying at the hotel, but we hope to open it up to locals as a venue as well."

Mr Flower said he's excited for this opportunity.

"There is an opportunity here for Port Macquarie to continue growing and this is a way forward for Flower Hotels to use our knowledge of the area and diversify the business."

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