Business News Australia reported that the Sheraton Grand Mirage Resort, a property owned by The Star Entertainment Group, has been put up for sale, with an asking price of around AUD200 million ($132.7 million). The move is seen as a cash grab by The Star, which bought the resort in 2017 for AUD140 million ($92.9 million).
Gold Coast’s Resurgent Hotel Sector Sparks Interest Among Investors
The Star has appointed Colliers, McVay Real Estate and JLL to manage the expressions of interest campaign, which aims to capitalize on the Gold Coast’s resurgent hotel sector. This sector has been driven by the opening of The Langham, Gold Coast earlier this year. The Colliers team has fielded numerous inquiries, with most of the initial interest coming from domestic parties.
According to McVay Real Estate chairman Dan McVay, who first sold the property to developer Chris Skase’s Qintex group in 1991, the Gold Coast hotel market is currently experiencing high demand and low supply. The market is being supported by a resurgent domestic tourism industry, while international investor interest is also being driven by Australia’s emerging safe-haven status for capital.
Singaporean and Hong Kong investors have reported that they are looking at Australia for investment opportunities due to the ongoing war in Ukraine, with the two countries averse to investing in Europe, China, and America. McVay notes that the surge in room rates and occupancy levels have made hotels a highly attractive investment opportunity.
Investors Eyeing Unique Opportunity with Sheraton Grand Mirage
The Sheraton Grand Mirage is a luxurious hotel situated on a 3.45-hectare site at Main Beach with 300 meters of absolute beachfront. With 295 rooms, the hotel has gained immense popularity among Australian tourists. While room rates have generally been steady, they have increased significantly in the past two years. Despite the price surge, visitors are still willing to pay for the hotel’s upscale amenities and breathtaking location.
Colliers boss Steven King says that the strong interest in the property is not unexpected, and many investors will run the ruler over it. The hotel is a unique property that does not often come up. King adds that hotels are achieving high occupancy rates and high nightly rates, making the market attractive to investors.
The Star, along with its Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium, acquired the Sheraton Grand Mirage in 2017. The acquisition of the hotel was a response to competitive pressure from the Chinese-backed ASF Consortium, whose plans for a casino resort were canceled by the Queensland Government in 2017. Despite previous upgrades, industry sources suggest the property requires further investment.
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