The Hilton Surfers Paradise Hotel, located in the heart one of Australia’s key tourist destinations, has been offered for sale for the first time ever and comes as the Gold Coast prepares for a recovery in domestic tourism.
Included in the offer is the adjacent tower containing 250 self-contained Hilton Residences and its associated management rights. Market expectations are for as much as $60 million.
After the global financial crisis struck in 2008, the Gold Coast tourist-driven economy suffered. Now the sharp decline in petrol prices and the lower Australian dollar are expected to contribute to a revival in domestic tourism and the “drive” holiday. According to the National Visitor Survey, for the final three months of 2014 Brisbane overnight visitors increased 20.3 per cent compared with year before.
McVay Real Estate is exclusively marketing the five-star hotel on behalf of vendor Brookfield Multiplex. Dan McVay said the Gold Coast is now set up for growth over the next few years.
“We are starting to see a genuine increase in visitor numbers into the Gold Coast, both locally and internationally, driven by the lower Australian dollar,” Mr McVay said.
“Increased direct international flights into the Gold Coast, coupled with the considerable infrastructure projects recently completed, underway and proposed in the lead up to the 2018 Commonwealth Games, provide the Gold Coast with an enviable growth story.”
The Gold Coast has the largest concentration of themed attractions such as Wet’n’Wild in the southern hemisphere and, according to the latest Census data, more than 12 million annual visitors and 22.4 million annual visitor nights.
Consumer and business sentiment have both lifted in the last couple of years while there has been growth in building approvals and property prices. There are huge projects such as the Pacific Fair Expansion and the $500 million athletes village for the Commonwealth Games that have been good for jobs.
In terms of real estate transactions the Gold Coast has not experienced this level of activity in years. This year already the Oasis Shopping Centre, Metro Market Shopping Centre and the Paradise Resort have all sold to local buyers for more than $200 million.
Last week first round offers for the Surfers Paradise Marriott, which is being sold by Indonesia’s Rajawali Property Group, closed and it is understood a number of offshore and local parties are chasing the $100 million asset.
Sam McVay said there is proven huge demand from all kinds of investors for five-star hotels, both onshore and offshore.
“The strong prices achieved in the recent transactions of the Sofitel Wentworth Hotel, Sheraton on the Park in Sydney and the Noosa Sheraton Resort and Spa reflect the effect of this competitive tension,” he said.
“We do not see this diminishing any time soon.”
The Hilton Surfers Paradise has 169 guest rooms, day spa, four swimming pools and two gyms.
Its trading performance has strengthened since opening late in 2011 and strong earnings growth is forecast to continue, according to McVay. Brookfield developed the entire mixed-use property.