Billionaires snap up Sheraton Grand Mirage resort as Star exits

Pub mogul Arthur Laundy and the Karedis family landed the Christopher Skase-developed hotel on the Gold Coast for $192m.

The Sheraton Grand Mirage resort on the Gold Coast.

Pub mogul Arthur Laundy and his long-term business partner, Sydney’s Karedis family, have beaten out US private equity group Outrigger to buy the Sheraton Grand Mirage resort on the Gold Coast for $192m.

The famed hotel was sold by beleaguered casino operator Star Entertainment, which led the international joint venture that owned the hotel but has been under pressure after copping heavy fines from state regulators.

The Australian revealed last month that the powerful consortium of billionaire hotel heavyweights had entered exclusive due diligence to buy the hotel.

The purchase of the famed hotel built by 1980s entrepreneur Christopher Skase expands the Laundy and Karedis family holdings of some of the best coastal properties on the eastern seaboard.

They own luxury hotels including the Manly Pacific Sydney MGallery Collection, Crowne Plaza Terrigal Pacific on the NSW Central Coast and the Sofitel Noosa Pacific Resort.

The hotels have been dramatically transformed under their ownership and plenty of works are in store for the ageing Sheraton resort on the Gold Coast, which is expected to be rebranded.

Pub mogul Arthur Laundy and the Karedis family landed the Chris Skase-developed hotel on the Gold Coast for $192m.

The purchase shows that the local big players are prepared to splash out and capitalise on the post-pandemic boom in domestic tourism and bet on the longer-term recovery of international tourism as direct flights are restored.

The publicans have also recognised the underlying value of owning coastal properties, with very few new hotels actually being built even in hot tourism areas like the Gold Coast as projects face stringent planning hurdles and prohibitive construction costs.

The Gold Coast is undergoing a much-needed reinvigoration with Chinese group AWH recently opening the The Langham Gold Coast as part of the Jewel development, and other wealthy developers also proposing new hotels, but the site now owned by the Laundy and Karedis family dominates the area.

For the Laundy and Karedis families, getting into hotels diversifies their cash flows away from gaming and into accommodation, which can provide returns more related to tourism and business travel rather than consumer spending. They are also experienced in styling up the five-star venues, putting their personal stamp on the properties.

Billionaire Pub Mogul Arthur Laundy. Picture: Nic Walker

Star picked up the resort in 2017 for $140m with the backing of Hong Kong developer Far East Consortium and retailer Chow Tai Fook, in a repeat of its $3bn Brisbane Queen’s Wharf venture. Star held a 50 per cent stake and the sale price showed a price of about $650,000 per room key.

The Laundy and Karedis families are hoping to capitalise on both the resurgence in Gold Coast property developments, demand from domestic tourists and on the return of international tourists to Australia, which is driving up room rates.

HTL managing director Andrew Jolliffe said that the “super impressive beachside accommodation portfolio the Laundy and Karedis families have collectively now curated is best in class in Australia”.

The sale was handled by McVay Real Estate, JLL and Colliers. Selling agent Sam McVay said the hotel was “an irreplaceable asset purchased by two great Australian families that will maximise its true potential”.

“Following the sale of the Waldorf Astoria to Fiveight, this is the second landmark hotel purchased by private Australians who can see the potential in our hospitality market,” he said.

Originally published as Billionaires snap up Sheraton Grand Mirage resort as Star exits