Crowne Plaza Surfers Paradise set to be sold off for more than $100 million
The Crowne Plaza Surfers Paradise on the Gold Coast has been listed for sale with a price tag north of $100 million, as hotels around the country continue to flood the market.
A private Singaporean family has listed the hotel at 2807 Gold Coast Highway, which is their only Australian hotel asset, to capitalise on current market conditions.
The sale includes a 269-key resort, management rights for the 104-key Gold Tower, a two-storey penthouse, retail space, a tavern with 19 gaming machines, 15 function venues and a 261-space parking complex.
Multiple food and beverage outlets, including Queensland’s only revolving restaurant with 360-degree views of the Gold Coast, also come with the sale.
The property has further development potential. Photo: Supplied
More than $2 million had been spent on the main facilities in the past two years.
All of the assets occupy a 1.2-hectare site with additional development land that has approval for 234 apartments in a 46-storey tower.
The property is being sold by CBRE Hotels’ national director Wayne Bunz and CBRE Gold Coast’s managing director Jonathan O’Brien.
“The Gold Coast is one of the most sought-after hotel investment markets and is also one of the most tightly held, with opportunities to gain an investment foothold rare, especially with vacant possession, so this presents a significant opportunity,” Mr Bunz said.
The new owner also has the scope to further develop on the site, with the selling agents appointing PlusArchitecture which has drawn up several architectural concepts for potential buyers.
“These plans include elevating and expanding the pool to take advantage of the ocean and hinterland views in addition to enhancing the yield of the site by adding two residential apartment towers and reconfiguring and expanding the tavern and retail spaces,” Mr Bunz said.
Mr O’Brien said the potential for apartment development while also generating income was a major drawcard.
“There are very few sites of this scale available for development in this precinct, and this opportunity also offers holding income, allowing flexibility for a developer to immediately undertake the residential development or hold until the next development cycle,” he said.
The property will also be directly connected to the Gold Coast light rail with a terminal in front of the hotel.
Hotel research firm STR’s regional manager Matthew Burke said the Gold Coast has experienced a long period of growth.
“(The Gold Coast) currently trades on an annualised basis at near-record occupancy of 72.8 per cent with average rooms rates for the 12 months to June 2018 at a record of $197.42,” he said.
“Events like the XXI Commonwealth Games provide a short term direct performance boost to the norm but performance overall continues to grow and May and June’s monthly results demonstrate the continued growth to prior year.”
The listing comes hot on the heels of AccorInvest’s move to sell its portfolio of 23 Australian hotels worth more than $300 million in one of the largest hotel portfolio listings in Australia.
All hotels within the portfolio are operated by AccorHotels, the country’s largest hotel management company. Notable assets include the ibis Hotel & Apartments Melbourne, ibis Sydney Airport, ibis Budget Sydney Olympic Park and ibis Newcastle.
Expressions of interest for Crowne Plaza Surfers Paradise close September 20.
