Crowne Plaza hits market for $100m

ANOTHER Surfers Paradise hotel has hit the market following the launch of a marketing campaign for the Hilton Surfers Paradise.

Crowne Plaza and Gold Tower in Surfers Paradise has hit the market.

IT must be the season for hotel sales.

News of the Hilton Surfers Paradise hitting the market has been followed swiftly by the launch of a marketing campaign for Crowne Plaza and Gold Tower.

The Singaporean owner of the twin-tower development is aiming to sell the property, which is its only Australian hotel asset, for more than $100 million.

The hotel previously sold in 2015 for between $60 million and $90 million.

The campaign, which lists the towers as available for sale either in one line or individually, comes at a time of buoyant investment and strong investor appetite.

Crowne Plaza and Gold Tower in Surfers Paradise has hit the market.

CBRE Hotels national director Wayne Bunz, who is marketing the Crowne property with CBRE Gold Coast managing director Jonathan O’Brien, said the Gold Coast market was underpinned by strong fundamentals.

The Commonwealth Games has proven a big winner for the Gold Coast market, with at occupancy rate of 86.9 per cent.

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“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,” he said.

Mr Bunz said in the year to date, average revenue per room growth has been 14.4 per cent.

He said that $2 million has been spent on upgrading the hotel’s facilities over the past two years and there was scope for further improvement.

Four Winds Revolving Restaurant at the Crowne Plaza in Surfers Paradise is Queensland’s only revolving restaurant.

“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 towers and reconfiguring and expanding the tavern and retail spaces.”

The sale of the 1.2ha Crowne Plaza holding features the 269-key resort, management rights for the 104-key Gold Tower, a two-level penthouse, retail space, tavern with 19 gaming machines, 15 function venues, a 261-space parking complex and a number of food and beverage outlets, including Queensland’s only revolving restaurant.

The property offers development upside with approval for 234 apartments in a 46-level tower.

Mr O’Brien said there were few sites on the market of the scale of the Crowne Plaza in Surfers Paradise.

“This opportunity also offers holding income, enabling flexibility for a developer to immediately undertake the residential development or hold until the next development cycle,” he said.

The Crowne Plaza is not the only Gold Coast hotel on the market.

The five-star Hilton hotel, which previously sold for about $50 million, has been put on the market by private company Ji Feng for approximately $80 million.

The Hilton was offloaded in 2015 by Brookfield Multiplex with the deal including the 169-room hotel and management rights to a letting pool with 250 apartments.

The retail and office area under the towers sold that same year to Phillip Wolanski’s Denwol group.

The hotel features four food and beverage outlets, conference facilities, pool deck, gyms, day spa and 89 undercover car parks.

McVay Real Estate is marketing the property through an expressions-of-interest campaign closing on September 6.