Chinese Hilton owners look to double money on Gold Coast flagship
The five-star Hilton Hotel in Surfers Paradise is for sale – with a price tag of about $80 million – after its Chinese based investors decided to sell out.
The privately owned company Ji Feng bought the hotel from Brookfield in 2011 for about $37 million and has now appointed specialist McVay Real Estate Australia to sell the property. The owner has no other commercial property interests in Australia but could be looking at new investments in Sydney.
The hotel, once part of the failed Raptis company, comprises 169 guest rooms, four food and beverage outlets, conference facilities, pool deck, two gyms, a day spa and 89 undercover car parks.
There has been a strong rebound in Gold Coast tourism and as such has proven to be one of the best-performing markets for hotel occupancy in Australia.
Revenue growth
McVay Real Estate’s Sam McVay said the Gold Coast market recorded revenue growth per available room in the year to date up 15.6 per cent on the same comparative period last year, placing it among the best performing destinations in Australia.
“We see the continued growth across the entire Gold Coast market over the coming years on the back of unprecedented infrastructure investment into the Airport, rail and roads,” he said.
Mr McVay said the new owners had a major opportunity to replace Hilton as the manager and make significant improvements to the hotel.
The pricing of about $80 million would still be substantially below replacement cost, allowing the new owners to make further capital investments, with more upside to be gained.
The hotel spreads across two towers and is offered with the associated management rights for the Hilton Residences.
