Hilton Hotel at Surfers Paradise sells to Dr Jerry Schwartz for $70 million after six-month campaign

A landmark luxury hotel at Surfers Paradise has been snapped up by a practicing doctor and airline owner from New South Wales for about $10 million less than the seller was hoping for.

The Hilton Hotel (left) overlooks Surfers Paradise.

THE Hilton hotel at Surfers Paradise has been snapped up by a practicing doctor and airline owner from New South Wales for about $10 million less than the seller was hoping for.

Dr Jerry Schwartz will pay $70 million for the five-star hotel, including management rights for both towers at the Orchid Ave site.

The blue-chip Hilton hit the market in July via an expressions of interest campaign by its Chinese owners Ji Feng Investments, 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. Its sale is expected to settle in May.

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Hilton Hotel, Surfers Paradise Photo: David Clark

Dr Schwartz’s family company is Australia’s largest privately owned hotel group with 12 hotels and 3000 rooms, including Rydges World Square, Rydges Central Sydney, Hotel Ibis World Square, Hotel Ibis King Street Wharf, Mercure Hotel Canberra, Mercure Hotel Sydney, Victoria Hotel Melbourne, Fairmont Blue Mountains, Rydges Newcastle, Crowne Plaza Hunter Valley, Novotel Newcastle, Sofitel Sydney Darling Harbour and the new Four Points by Sheraton at Sydney Central Park.

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

Dr Schwartz is known as a turnaround specialist for underperforming hotels.

“I believe there is enormous potential for growing the hotel’s business,” he said.

“I have great faith in the Gold Coast as Australia’s premier family, couples and groups market because its beaches, natural attractions, theme parks, events, restaurants and nightlife provide a complete tourism package that is attractive to both the domestic and international travellers.

“The Gold Coast is ideally positioned to take advantage of the boom in international travel from Asia and the Pacific, and with Gold Coast and Brisbane international airports expanding their range of source markets, I thought it was the ideal time to enter the market.”

Hilton Hotel Gold Coast pic: Russell Shakespeare

The Hilton’s sales campaign was followed swiftly by the launch of marketing for another Surfers hotel and residential landmark, the Crowne Plaza and Gold Tower.

The Singaporean owner of that twin-tower development aimed 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 Watermark Hotel at Surfers Paradise, was bought by Melbourne-based property investment firm SB & G Hotel Group for $72.5 million in March, and is being managed by Intercontinental Hotels Group as its first Voco branded hotel.

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Hilton Hotel Gold Coast pic: Russell Shakespeare

The Gold Coast emerged as one of the strongest hotel markets in Australia in 2018, thanks largely to a boost from Commonwealth Games bookings.

CBRE’s Hotels MarketView report for the second quarter showed the city had grown RevPAR (revenue per available room) by 49 per cent in April, which helped to boost the RevPAR rate for the 12 months to June by 7.1 per cent to $144.

Occupancy grew by two per cent to 72.8 per cent while the ADR (average daily rate) grew by an impressive five per cent to $197.

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