Marriott International tipped as front runner to operate five-star hotel at Jewel Gold Coast

A RENOWNED international company is firming as likely operator of Gold Coast’s beachfront Jewel resort. The revelation comes as more details emerge about why construction has been delayed on the $1.4 billion project.

LUXURY hotel group Marriott is firming as the operator of Gold Coast’s Jewel resort after flailing Chinese company Wanda Hotels walked away from an agreement to manage the beachfront gem.

The revelation comes as more details emerge about why construction has been delayed on the $1.4 billion project.

The Bulletin understands Marriott International is among the big names to express interest in taking up residence in the 169-room Jewel hotel, a deal that would likely see one of its top-end brands settle into the Surfers Paradise beachfront.

The change in management of the hotel, to be housed in the project’s middle tower, coincides with a major disruption of its construction after new developers Yuhu Group moved to adjust specifications on the residential apartments.

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An artist’s impression of a hotel room planned for Jewel Gold Coast by developer Yuhu Group. Photo: Supplied

Insiders say previous owner Wanda, under siege from the Chinese Government and bleeding from its foreign investments, had cut costs by importing cheap supplies for the apartments, which it believed would be snapped up by Chinese investors nonetheless.

However, Yuhu Group, widening its market to include potential buyers from the Middle East, India and New Zealand, quickly realised the specifications did not match the price point and is understood to have committed an extra $120 million to achieve a higher-quality result.

The request has apparently left building contractor Multiplex in a bind with subcontractors already working in line with scores of existing contracts, making the variations legally complex.

Work has all but stopped on the $1.4 billion project for the past fortnight, with 400 workers stood down and another 400 jobs uncertain.

JEWEL WORKERS SPEAK OUT

Jewel workers protesting as they are kept in the dark about the futures by developer Yuhu Group and project builder Multiplex. Picture: Sally Coates

Documents lodged with the Hong Kong Stock Exchange during Yuhu’s purchase of Jewel and the One Quay development in Sydney reveal it was a condition of the sale that Wanda would manage both hotels under the new ownership.

However, Wanda and Yuhu have since agreed not to honour that part of the contract and the hotel management rights were put to an international expressions of interest campaign.

Yuhu Group is expected to confirm the Gold Coast hotel operator by the end of November.

Marriott International operates a number of high-end hotel brands, including Ritz-Carlton, St Regis, Bvlgari and Luxury Collection.

Hotel Marques de Riscal, A Luxury Collection Hotel in Elciego, Spain.

The group is currently building Australia’s first Luxury Collection hotel, named The Tasman, in Hobart. It is due to open early next year.

Marriott’s Luxury Collection hotels are established in striking buildings at prime locations around the world.

The company has announced Australia’s first St Regis will open in Melbourne in 2022 and that it was looking for further properties for the luxury portfolio.

The Bulletin has contacted Marriott for comment.

An artist’s impression of the pool area under construction at Jewel.

A statement from Yuhu Group said “several major international hospitality groups” had visited the Jewel site.

“It is expected that the hotel operator will be selected in the coming weeks,” the statement said.

“As is common industry practice, Yuhu will take guidance from the chosen operator when finalising design and configuration elements to ensure the hotel also reflects the operator’s signature characteristics and feel.

“Plans were in fact made in the construction schedule to allow for the selected operator to add its own touches to the hotel, such as feature walls in the hotel’s podium levels, without causing any delay to overall project completion schedule.

“The selection process is continuing and an operator will be announced at the appropriate time.”