Two of the Gold Coast’s most well-known hotels have hit the market in the same week, taking advantage of a booming hotel sector and a strong post-Commonwealth Games development pipeline.
The two hotels, the Crowne Plaza and the Hilton Hotel in Surfers Paradise have launched to market for a collective $200 million.
The blue-chip Hilton Hotel in Surfers Paradise has been offered up for sale for at least $80 million, while the Crowne was listed with expectations north of $100 million.
Gold Coast hotel operators cashed in on the visitor boom during the 2018 Commonwealth Games, with an average occupancy rate of 86.6 per cent.
The hotel sector has been flooded with listings in the last week, with $300 million worth of Ibis-branded AccorInvest hotels hitting the market on Tuesday.
Hilton owners to make $30m profit in three years
Privately-owned company Ji Feng purchased the Hilton hotel from Brookfield Multiplex in 2015 for $50 million.
The Chinese-based owners will now be looking to make a significant profit on the landmark mixed-use development in the heart of Surfers Paradise.
Positioned across two iconic towers, the offering comprises the Hilton Hotel and the associated management rights for the Hilton Residences.
The hotel, which has 169 rooms and 250 residences, also boasts conference facilities, a day spa, four food and beverage outlets and 89 undercover car parks.
McVay Real Estate Australia has been appointed to sell the property after handling the previous marketing campaign in 2015.
“The Hilton Surfers Paradise is one of the newest and most centrally located 5-star hotels in the market,” McVay managing director Sam McVay said.
“It will be acquired substantially below replacement cost and allows an incoming owner the ability to further enhance income through a number of value-add initiatives.”
McVay Real Estate’s Sam McVay said the Gold Coast market is among the best-performing destinations in Australia.
“The Gold Coast remains one of the best-performing markets in Australia with STR reporting Year to Date RevPAR up 15.6% on 2017.”
“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.”
Crowne Plaza listed for $100 million
The Gold Coast’s Crowne Plaza has been listed on behalf of a Singaporean owner moving to capitalise on the current strength in the Gold Coast hotel market.
The hotel offers 370 rooms, a two-level penthouse, extensive retail space, a bar, 15 function venues, a 261-space parking complex and multiple food and beverage outlets.
Almost $2 million has been spent on upgrading the buildings central facilities and additional development approval has been procured with approval for 234 apartments in a 46-level tower.
CBRE Hotels has been exclusively appointed to manage the sale of Crowne Plaza.
“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,” CBRE Gold Coast managing director Jonathan O’Brien said.
In the year to date the Gold Coast has been the best performing hotel market in Australia with the Commonwealth Games establishing momentum that has continued into June.
“The Gold Coast has experienced a long period of growth and 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 AU$197.42,” STR regional manager Matthew Burke 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.”
Prime Slice of the Gold Coast Hits the Market
A prime 9,637sq m slice of the Gold Coast has come to market, giving potential investors an opportunity for development or an idyllic residential holding.
The property, located at 162 Siganto Drive, is positioned in a prime growth area and only eight minutes from the newly built Westfield Shopping Centre in Coomera.
The proposed commercial mixed-use development site caters for a range of potential uses under the low impact industry zoning which will suit developers in the distribution industry, or those looking for professional office space or even indoor sports and recreation.
The surrounding area has benefited from strong residential growth which has supported the housing market, commercial businesses and new infrastructure.
The site sits within a rapidly expanding growth corridor and is situated directly off the M1, approximately 40 minutes from Brisbane, 25 minutes from Burleigh Heads and 20 minutes to Southport CBD.
On the site currently sits a resort style luxury home and swimming pool.
Under the current medium density zoning we understand the potential for this site may suit age care or subdivision of town homes and potential many more uses (STCA).
The proposed DA maximises the shape and size of this site and plans showan NLA of approximately 3,135sq m and only around 32 per cent site coverage allowing developers to increase the GFA and turn this development site into a winning investment.
The great thing about this site is it is tucked away giving potential businesses lots of privacy, but also providing ease of access around the site as it opens up with potential waterfront views.
The M1 off ramps to Siganto Drive is a massive plus with the North and South entry points to Siganto Drive being the Oxenford/Hope Island exit and North Helensvale/Movie World M1 access ramps allowing for an effortless flow of vehicles.
With recent transactions in this area of Saltwater Creek Pub and a mortgagee sale of the proposed MI-HQ development site we can see that by these transactions occurring in the last few months that commercial property and development opportunities are in high demand.
Gold Coast office space in hot demand
NEW data has revealed the demand for office space on the Gold Coast continues to increase.
The Property Council of Australia’s 2019 Office Market Report shows the Coast’s office market vacancy has fallen from 12.0 percent in July 2018 to 11.6 percent in January 2019.
Chris Mountford, Queensland Executive Director for the Property Council of Australia, attributed it to positive tenant demand and encouraging market conditions following the close of the 2018 Commonwealth Games.
“Figures from the 2019 report show a healthy office market with positive tenant demand and a good level of net absorption. Rather than scaling back post-Commonwealth Games, the region has defied the nay-sayers and continued its growth trajectory,” said Mr Mountford
“Activity has been particularly positive in the Bundall and Surfers Paradise locales, with 2,986sqm of net absorption being recorded across the Coast markets over the period.”
“Robina-Varsity Lakes and Southport also witnessed a decline in vacancy, due to net absorption, which shows growing strength in the local economy.”
The only suburb to see a notable increase in office space was Broadbeach.
“We did see an increase in vacancy in the Broadbeach area, but this was due to 892sqm of supply additions.”
“With little new stock on the horizon for 2019, we can expect vacancy rates to tighten throughout the year, putting the Gold Coast in a strong position going forward,” said Mr Mountford.
Yuhu Snap Up Neighbouring Site to Expand Jewel
Development giant Yuhu Group has expanded upon its $1 billion Jewel development, snapping up a neighbouring parcel of land in Surfers Paradise.
The $11.25 million purchase includes two low-rise apartment buildings on a 1264sq m parcel of land adjacent to the major Jewel development.
While no specific plans for the 2 Wharf Road site have been finalised, Yuhu chairman Jimmy Huang said the vision for Jewel is to “create the most desirable destination possible for both residents and visitors”.
“The extra land could, for example, lend itself to additional retail and commercial offerings, including facilities to support leisure, exhibitions, entertainment or business activities.”
Yuhu Group acquired the historically difficult developmentproject from Chinese conglomerate Dalian Wanda, along with One Circular Quay in Sydney, for $1.13 billion in May last year.
The three crystalline towers that form the Jewel project reached topping out stage last August.
In North Sydney Yuhu has topped out its $250 million residential development ‘The Miller’ reaching its maximum 21-storey construction height.
The PTW-designed tower will comprise 169 private residences and 100 serviced apartments, managed by Quest when complete.
Huang says The Miller will provide high-quality urban living in North Sydney.
“It is also in proximity to the waterfront and Sydney CBD just two kilometres away,” he said.
The Miller is scheduled for completion in the third quarter of this year.
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