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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.
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.”
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.”
