Brisbane

Strong Gold Coast fundamentals tipped to drive interest in Crowne Plaza sale, with price expectations north of $100 million

The Crowne Plaza Surfers Paradise and associated assets are to be listed for sale, providing an opportunity to acquire a prominent tourism complex in one of Australia’s most sought after hotel investment markets.

26 Jul 2018

The Crowne Plaza Surfers Paradise and associated assets are to be listed for sale, providing an opportunity to acquire a prominent tourism complex in one of Australia’s most sought after hotel investment markets.

CBRE Hotels has been exclusively appointed to market the assets, on behalf of a private Singaporean family. They will be sold in-one-line or individually through an International Expressions of Interest campaign. 

Wayne Bunz, National Director of CBRE Hotels, said; “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.”

The offering provides diverse income streams, including the prominent 269-key resort, management rights for the Gold Tower (104 keys), a prestigious two-level penthouse, extensive retail space, a tavern offering 19 gaming machines, 15 function venues, a 261-space parking complex and multiple food and beverage outlets, including Queensland's only revolving restaurant with 360º views of the Gold Coast.

The large 1.2ha landholding also offers additional development land with approval for 234 apartments in a 46-level tower. The zoning has no height restrictions, which allows for further apartments or an additional tower on the same site, subject to the relevant planning approvals.

Managing Director of CBRE Gold Coast, Jonathan O’Brien, said; “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.”

The resort fronts the Gold Coast Highway and is strategically positioned between the two hubs of Surfers Paradise and Broadbeach, in direct proximity to key demand generators including the Gold Coast Convention Centre, Star Casino, Pacific Fair Shopping Centre and the soon to be completed Jewel development. 

The property also offers direct connectivity to the Gold Coast light rail with a terminal in front of the hotel.

The sale plans coincided with the owners’ decision to divest their only Australian hotel asset, to capitalise on a buoyant investment market and strong investor appetite.

Mr Bunz noted that while the resort presented well, with $2m spent on the central facilities over the past two years, a new owner had the scope and flexibility to go far beyond what was already in place.

“We have engaged PlusArchitecture, who have prepared multiple concepts to provide to potential purchasers,” Mr Bunz said.

“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 added that the ability to gain vacant possession coupled with the resort’s prime location, value enhancement options and the strong fundamentals of the Gold Coast hotel market would help underpin strong buyer interest.

Year to date the Gold Coast has been the best performing market in Australia with distance, with RevPAR growing 14.4%.

While much of this can be attributed to the Commonwealth Games, the momentum continued into June, with RevPAR growth of 10%.

Matthew Burke, Regional Manager for hotel benchmarking group STR, added; “The Gold Coast has experienced a long period of growth and currently trades on an annualised basis at near record occupancy of 72.8% with average rooms rates for the 12 months to June 2018 at a record of AU$197.42. 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.”
 
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.