Dr Jerry Schwartz reveals plans to overhaul management of Surfers Paradise Hilton after $70m buy

New restaurants and bars, punchy decor and a comprehensive overhaul of operations are all on the table under the new owner of the Gold Coast’s landmark Hilton hotel. Here’s why he thinks it can do better

Dr Jerry Schwartz, has made his first foray into Queensland hotel property with the $70 million purchase of the five-star Hilton Surfers Paradise. Photo: Supplied

NEW restaurants and bars, punchy decor and a comprehensive overhaul of operations are all on the table under the new owner of the Gold Coast’s landmark Hilton hotel.

Jerry Schwartz, a practicing doctor whose family company is Australia’s largest private hotel operator, has picked up the Surfers Paradise skyscraper for $70 million.

The sale is expected to settle in May and includes the five-star hotel, including management rights for both towers at the Orchid Ave site.

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Hilton Hotel on the Gold Coast.

Dr Schwartz, speaking yesterday from his Fairmont Resort in the Blue Mountains, said the Hilton was not reaching its potential and would seek early talks with the global brand to figure out why.

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He said many hotels struggled to succeed when operators combined holiday apartment management with core hotel operations.

“It’s a trap that quite a few Gold Coast hotels fall into when they run together with management rights,” he said.

“Units being in the same pool as the hotel detracts from the hotel running itself — there are too many room types and it makes it more difficult to run the hotel.

Hilton Hotel Gold Coast. Pic: Russell Shakespeare

“I’ll have discussions with Hilton about how they’re currently running the hotel and how we can improve that.”

Dr Schwartz, a father of three young children, said he’d owned a unit at Paradise Waters and loved his Gold Coast holidays so much he started shopping for a hotel here.

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“We used to have a unit at Noosa, but made the upgrade to the Gold Coast, and it’s been such a great destination, not just for adults but for the kids,” he said.

“I put two and two together and thought `when a good hotel comes up for sale, we’ll have a look at it’.”

The blue-chip Hilton hit the market in July via an expressions of interest campaign by its Chinese owner Ji Feng Investment Holdings, which was hoping to make about $80 million.

Property records show Ji Feng bought the package of three properties for a total of $73.9 million in 2011.

The hotel features four food and beverage outlets, conference facilities, pool deck, gyms, day spa and 89 undercover car parks. It is expected to settle in May.

Dr Schwartz said he’d be keen to enhance the food and beverage offerings and would consider redesigning the rooms.

“They need a bit of character and to lose a bit of sterility,” he said.

“Simple things like putting prints on the walls and making the lobby and common areas have a bit more personality.”