- Gold Coast luxury hotel market shows resilience post-pandemic
- Demand for luxury accommodation on the rise in the region
- The property was placed on the market earlier this year
The sale of the Sheraton Grand Mirage Resort on the Gold Coast highlights the resilience of the premier leisure hotel market according to Colliers.
While continued investment in the lead-up to the Olympics will continue to see the sector grow.
Colliers’ Head of Hotel Transactions, Karen Wales, said the purchase by the Karedis and Laundy families, who own a number of high-profile beachfront hotels, signifies continued investor confidence in the Australian hotel market despite rising interest rates.
“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,” said Wales.
“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.”
Karen Wales, Colliers’ Head of Hotel Transactions
High standards
Wales said 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 best performing hotel markets.”
The Sheraton Grand Mirage Resort, which occupies 3.45 hectares and has 215 metres of beach frontage on the Gold Coast, was sold in line with market expectations; the sale is subject to the buyer obtaining approval for the transfer of the liquor licence from the Queensland Office of Liquor and Gaming Regulation.
According to Colliers, demand for luxury accommodation on the Gold Coast is on the rise, with luxury hotel room rates reaching an average of $485 over the past 12 months.
Across the region, hotel room rates have risen to an average of $275 – a 40% increase compared to 2019.
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.
Olympics to drive investment
The Star Entertainment Group’s CEO and Managing Director Robbie Cooke said the region is likely to continue to benefit from a decade of development in the lead-up to the 2032 Brisbane Olympics.
“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,” said Cooke.
He said their $2 billion-plus plan for The Star Gold Coast continues to move forward which will deliver new, world-class resort facilities across multiple towers, together with 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 Queen’s Wharf development in Brisbane provides The Star and its consortium partners two landmark properties to help boost tourism across South-East Queensland.
