The Story Bridge Hotel in Kangaroo Point is heading to the market with a price tag well above the $70 million its current owners paid in 2021. The decision reflects more than just Brisbane's booming property market; it signals the high-value premium placed on hospitality assets in a city facing a serious shortage of hotel beds.
The historic venue, nestled directly beneath Brisbane's most recognisable landmark, sits in one of the most strategically positioned locations in the city. Operating continuously since 1886, the hotel has become embedded in Brisbane's cultural fabric. The property comprises five bars, four dining areas, a gaming lounge, TAB, bottle shop, and nine function spaces, making it a significant revenue-generating asset beyond its cultural value.
Brisbane's hotel market faces genuine structural constraints. Unlike residential real estate, which continues to see new construction despite cost pressures, new hotel development remains sluggish. The shortage is not accidental. Construction costs, labour shortages, and developer feasibility concerns have choked off supply across multiple property classes. For hotels specifically, the barriers to entry are higher still. Quality hospitality assets require not just capital but operational expertise, brand positioning, and established clientele.
The property's owners, the Deery family, have operated the hotel since 1967. The hotel was originally built in 1885 and opened as the Kangaroo Point Hotel before being renamed after the Story Bridge was constructed in the mid-1930s. Under Deery stewardship, the venue has undergone significant renovations while maintaining its heritage character and status as a local institution.
The broader Brisbane property market context makes the timing strategic. Dwelling values across Brisbane have grown 17.3 per cent year-on-year as of February 2026, with experts pointing to tight rental markets, ongoing supply shortages, and strong interstate migration as the primary drivers. Inner and middle-ring suburbs like Kangaroo Point have recorded particularly strong growth, boosted by proximity to transport infrastructure and the 2032 Olympic Games investment.
Whether the family is capitalising on market peaks or investing sale proceeds elsewhere remains to be seen. What is clear is that premium hospitality assets in the right location have become scarce and expensive in Brisbane. The hotel's listing price will likely provide a test of how much institutional and private investors value proven, operational, revenue-generating hospitality properties in one of Australia's fastest-growing capitals.