Surfers Paradise Pavilion and the Vibe Hotel sold by Shangri-La Hotels for $60m

A 101-year-old billionaire has sold the Surfers Paradise Pavilion and the Vibe Hotel for $60m, with its new owners now revealed. WHAT IT MEANS FOR THE BUSINESS

Surfers Paradise Pavilion and the Vibe Hotel have sold to a Thailand-based accommodation company for more than $60m.

KS Hotels secured the property, understood to be significantly above the original asking price, from 101-year-old Malaysian business tycoon Robert Kuok, who bought the site through his Shangri-La Hotels group nearly a decade ago.

The deal, brokered by international firm JLL’s hotels executive vice president Adam Bury, Tim Jones and Tom Gleeson, included the hotel, the pavilion and its 35 poker machines and marina.

Vibe Hotel and Surfers Paradise Pavilion have sold. Picture: Supplied by JLL

Mr Bury said the 4700sq m site and its holdings received the highest number of inquiries of any it had brought to the market in the past year.

“The interest was very broad, from publicans, hoteliers, private equity firms and local families, both on the Gold Coast and Brisbane, as well as interstate,” he said.

“We found that there was an uptick of interest in the hotel market from Asia and this is one of those properties which really kicked it off.

Robert Kuok (Pictured in 1996), sold the site for $60m.

“There’s a few factors in this, including the economic fundamentals of the area being strong and, if you look at the Gold Coast market, it recovered incredibly well from Covid and there is limited supply on the horizon.”

Shangri-La Hotels bought the site in December 2015 for $46m from Tobar Hotel ­Investment No 2, a vehicle for Barana Group and Toga Hospitality, linked respectively to Greg and Kath Shand and Ervin, Gary and Allan Vidor.

Mr Bury predicted demand in the market would only grow in the lead up to the 2032 Olympic Games.

The parcel of land and its holdings which were sold. Picture: Supplied by JLL

“People believe there is a strong upside and there will be good capital growth in the next five to 10 years,” he said.

“There is another sale we are currently working on which has already generated significant interest too.”

The 22-storey hotel tower, which fronts the Gold Coast Hwy and the Nerang River, has 199 rooms and was originally built as the Chevron Hotel, before transitioning into the Concorde Hotel in 1996.

Surfers Paradise Pavilion, initially built in the late 2000s as the Gold Coast Titans clubhouse Titanium, is currently leased to Artesian Hospitality.

It is understood Artesian has a long-term lease on the property.

Originally published as Surfers Paradise Pavilion and the Vibe Hotel sold by Shangri-La Hotels for $60m