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.”
Meriton Ocean Tower an Icon for the Next Era
Rising 252 metres, Ocean will offer residents unobstructed, never-to-be built out views across the sea and beyond.
Ocean is set to be a beachfront landmark, bringing to life a new era in modern living, one where lifestyle, convenience and luxury meet.
On the doorstep of the Cypress Avenue light-rail station and just 20 minutes from Coolangatta Airport, Ocean will combine a vibrant lifestyle with modern amenities and easy connectivity, ensuring future residents will experience a quality of apartment living never before seen on the Gold Coast.
The 74-floor glass tower designed in collaboration with award-winning architects SJB will feature 262 bespoke apartments and 446 luxury 5-star hotel suites.
“We will be selling the high life, literally” Meriton founder and managing director Harry Triguboff said.
The veteran developer recently announced apartment buyers would have the opportunity to buy from level 45 up to level 74.
The lower floors would be devoted to hotel suites trading under Triguboff’s Meriton Suites brand.
Ocean, which fronts premier beachfront street The Esplanade, will create a bold first impression from the moment residents and guests step into the expansive lobby with its soaring 4.5 metre ceilings.
Residents will pass through this space to their own private reception area, absorbing the opulent atmosphere as they go, and enter a high-speed smart lift, ensuring a quick return to their apartments.
The Ocean apartments will range from two-bedroom layouts with floor areas of up to 91sq m through to three-bedroom designs averaging 120sq m.
Ocean will also feature a rare collection of five top-floor penthouses that will have floor areas of up to 203 square metres.
The hero of the home is undoubtedly the contemporary kitchen in each Ocean apartment. The sleek and luxurious design make it as functional as it is beautiful, with every detail considered.
Features include premium SMEG stainless-steel appliances including concealed undermount rangehood, gas cooktop, oven, microwave, and a fully integrated dishwasher, Caesarstone benchtop and mirror splashback, contemporary pendant lights above all island benches add an extra element of sophistication.
The tower will have three levels of basement and will sit on a five-level podium with extensive lifestyle facilities exclusive to Ocean residents and their guests complementing this stunning area.
A beach club on level five is serviced by a bar and features lush landscaping, while level 33 features a 22-metre indoor pool with unobstructed ocean views, gymnasium, sauna and community rooms.
Triguboff said Ocean, on which construction started in May on the 3833sq m site, would be one of his most iconic projects.
“It will be my 19th tower on the Gold Coast and by far my most ambitious – you’re never too old to have ambition.
“In my judgment it’s going to be an absolute winner.
“There’s nothing like it on the Surfers Paradise beachfront – it’s got everything and every apartment will have unobstructed ocean or district views.
“I’d equate Ocean to a city within a city, with its own leisure facilities, beach club, supermarket, shops, restaurants, and a childcare centre.”
Triguboff said he expected Ocean to have the Surfers Paradise beachfront market virtually to itself.
“The banks have made it impossible for Australian developers to contemplate a beachfront project of any scale.
“In fact, we expect Chinese buyers to head the Ocean way and take a third of our apartments.”
No price has been put on the Ocean high life – prices are to be released ahead of the project’s launch next month.
Scentre Group launches 21st century shopping centre
Scentre Group has cut the ribbon on the $470 million development at Coomera in Queensland, the property giant’s first greenfield shopping centre project since being spun out of Westfield.
In a break with tradition the centre at the northern end of the Gold Coast will also open without having a department store as the anchor.
It has been 12 years since Westfield opened its North Lakes mall, which was before the creation of Scentre Group. The next big project for the landlord will be the shopping centre at Barangaroo Central in Sydney.
Using the town centre model, in an attempt to increase dwell time for visitors, the 59,000 square metre site will offer up to 40 per cent of space devoted to entertainment and leisure with and Event Cinemas with Gold Class.The major tenant brands will include H&M and Mecca Cosmetica and also a Universal movie store as well 40 specialty retail stores, including Coles, Woolworths, Kmart, Target, JB Hi-Fi, Rebel.
One of the key aspects of the new shopping centre is The Backyard, which is an area that offers a play area for children to hold birthday parties, a gym zone, BBQ areas and water features.
Westfield Coomera sits opposite the Dreamworld theme park and the nearby Movie World, to capture the tourist dollars.
Scentre’s chief executive Peter Allen said the group used the ”blank canvas” of a greenfield project to create a shopping centre of the future.
Scentre Group has opened its new $470 million Coomera shopping centre, Gold Coast, Queensland
”Coomera centre is the first mall we have created from the ground up and using data collected we can curate it for the area, which is a growth corridor” Mr Allen said.
Mr Allen said the research undertaken by Scentre has shown that customers want more leisure and entertainment with specific specialty areas, such as a holey moley golf putt putt bar and restaurant.
”We will have key retailers that offer the same individual products that are offered in a traditional department store,” he said.
Mr Allen said the ongoing parliamentary inquiry into the franchise industry had had no direct impact on the Scentre Group.
He said, as a landlord, Scentre always encouraged strong and healthy relationships between franchisors and franchisees.
Circle On Cavill Mall Hits the Block with $80 Million Price Tag
Sydney-based funds manager EG has listed the Circle on Cavill retail centre in the heart of one of Australia’s busiest tourism destinations, Surfers Paradise.
Like many retail landlords, EG recently shifted the centre’s focus to dining, convenience retailing and customer experience.
The 12,364sq m centre underwent $13 million in capital works, including the installation of a community space, upgrades to tenant fit-outs, a children’s playground, landscaping and a giant television screen.
EG acquired the shopping centre, which sits at the base of Sunland’s twin tower Circle on Cavill development, for $40 million in 2011.
Anchored by Woolworths under a long-term lease, EG’s repositioning of the centre as more entertainment-focused has increased the visitations post-upgrade, EG divisional director Daniel Farley said.
“The physical works have greatly transformed the shopping experience to a day and night destination with diverse food and entertainment options.”
McVay Real Estate agent Sam McVay is marketing the property alongside JLL’s Jacob Swan and Sam Hatcher.
“The Gold Coast market continues to go from strength to strength, with the success of the 2018 Gold Coast Commonwealth Games providing the region with even greater global visibility,” McVay said.
“The growth in offshore demand for the Surfers Paradise CBD market continues unabated.”
EG Funds is developing a major twin-tower, mixed-use project nearby on Orchid Avenue and Surfers Paradise Boulevard.
Billed as an “entertainment hub for south-east Asia”, the recently approved twin-tower skyscrapers will reach 56-storeys and 72-storeys above the Surfers Paradise entertainment district.
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