Star Entertainment Group and its partners Chow Tai Fook Enterprises and Far East Consortium have sold the Sheraton Grand Mirage Resort on the Gold Coast to entities owned by the Karedis and Laundy families for $192 million.
In a filing, Star Entertainment said Australian Wattle Development Pty Ltd, which was 50% owned by the group, had reached a sale agreement on the asset.
Australian Wattle Development paid $140 million for the asset in January 2017, with the sale price representing about $650,000 per key.
The Sheraton Grand Mirage Resort, which occupies a land area of 3.45 hectares and beach frontage of approximately 215m on the Gold Coast, was sold in line with market expectations, according to Colliers.
Colliers, McVay Real Estate and JLL negotiated the sale of the Sheraton Grand Mirage Resort on the Gold Coast on behalf of The Star Entertainment Group and consortium partners, Chow Tai Fook Enterprises and Far East Consortium.
The sale was subject to the buyer obtaining approval to the transfer of the liquor licence from the Queensland Office of Liquor and Gaming Regulation.
The purchase by the Karedis and Laundy families, who jointly own a number of beachfront hotels, including the Sofitel Noosa, Manly Pacific and Crown Plaza in Terrigal, signified continued investor confidence in the Australian hotel market, according to Colliers’ Head of Hotel Transactions Karen Wales.
“The sale of the Sheraton Grand Mirage Resort, which boasts a prime beachfront location, represents an uplift of more than 80% per key on the last high-end hotel to trade on the Gold Coast, the Hilton Surfers Paradise, which sold in 2019 for $355,000 per key,” Wales said.
“Global luxury resort liquidity is at an all-time high, as investors and operators are increasingly attracted to hotels such as the Sheraton Mirage, which addresses consumer preferences for more authentic travel experiences post pandemic.
“Well-known for being sought-after by celebrities, tourists and the Australian population alike, in addition to hosting events of international significance, the Gold Coast’s Sheraton Grand Mirage Resort is of the highest standard, and selective upgrades will enhance this iconic landmark for decades to come.
“The Sheraton Mirage’s diverse income stream, with extensive conference facilities and quality food and beverage offerings, will also contribute to the accelerated growth of the region and ensure the Gold Coast continues to be one of the the best performing hotel markets.”
Gold Coast luxury hotel room rates reached an average of $485 over the past 12 months, underpinning the boost in room rates across all hotels in the region to an average of $275 – a 40% increase on the year to April 2019, according to Colliers’ research.
As South-East Queensland prepares to benefit from increased global awareness and popularity, and a golden decade of investment and development in the countdown to the 2032 Brisbane Olympic and Paralympic Games, The Star and its partners remain committed to one of the fastest growing regions in Australia, according to The Star Entertainment Group’s CEO and Managing Director Robbie Cooke.
“As the tourism sector continues to recover and flourish, hotel accommodation across South-East Queensland will continue to experience elevated performance and reap the rewards driven by the sought-after nature of this prime destination,” Cooke said.
“Our $2 billion-plus masterplan for The Star Gold Coast continues to advance and deliver new, world-class resort facilities across multiple towers, together with exciting new restaurant and bar precincts, entertainment, and retail options.
“Our vibrant offering already includes three hotels, with another planned for completion in 2024, along with short-term leasing options that create at scale one of the most significant tourism accommodation portfolios nation-wide.”
The Star Gold Coast and the transformational Queen’s Wharf development in Brisbane, provides The Star and its consortium partners two properties from which to drive networked tourism outcomes for South-East Queensland.