Hilton owner aims for $80m jackpot
THE blue-chip Hilton hotel in Surfers Paradise has hit the market with the Chinesebased owners looking to make a significant profit.
The five-star hotel, which previously sold for about $50 million, has been put on the market by private company Ji Feng for approximately $80 million.
The Hilton was offloaded in 2015 by Brookfield Multiplex with the deal including the 169-room hotel and management rights to a letting pool with 250 apartments.
The retail and office area under the towers sold that same year to Phillip Wolanski’s Denwol group.
The hotel features four food and beverage outlets, conference facilities, pool deck, gyms, day spa and 89 undercover car parks.
It is being marketed by McVay Real Estate, which handled the previous successful marketing campaign in 2015.
It comes as AccorHotels takes its first step to digest its $1.2 billion acquisition of Surfers Paradise-based Mantra, by offloading hotels, none of which are based on the Gold Coast, from its investment platform.
The AccorInvest Australian Hotel Portfolio is made up of 23 hotels totalling 1797 rooms across Sydney, Melbourne, Canberra, Brisbane, Perth and several major regional cities.
The three Queensland properties are the freehold of the 93-room Ibis Budget Brisbane Airport in Hendra and the leaseholds of the 296room Novotel Brisbane at 200 Creek St and the 412room Ibis Brisbane and Mercure Brisbane at 16 Ann St in the CBD.
The sale through JLL Hotels & Hospitality Group marks another shake-up of Accor’s structure having recently sold a 55 per cent stake of AccorInvest to some of the world’s biggest sovereign wealth funds and institutional investors for almost $7 billion.
JLL Hotels & Hospitality Group’s Craig Collins and Peter Harper are handling the sale of the portfolio through an expressions of interest campaign.
Mr Collins said: “Never before has an offering of this nature been presented to the open market in Australia.”
“The pure scale of this portfolio and its diversity — in terms of location, market positioning and income profile — presents investors with an opportunity to immediately establish an unparalleled foothold in one of Asia Pacific’s most highly sought after hotel investment destinations.
“Economy hotels are a highly proven and successful hotel model in the Australian market. Their typically low operating costs and high level of profitability make them very attractive investments.”
Mr Harper said the hotels were well established in their respective markets and occupied a combined 54,500/sq m of land.
“Furthermore, there is significant potential for both trading and capital value upside as … a number of assets are positioned in key economic growth areas,” he said.
“The sale offering comes at a time when the Australian hotel market is experiencing unprecedented investor interest and we expect that a wide range of groups will be drawn to the very attractive fundamentals of the individual hotels and portfolio as a whole.”