The billionaire Laundy and Karedis families have bought up an iconic Gold Coast hotel for almost $200 million.
The Sheraton Grand Mirage Resort on 3.45ha of land at Main Beach was sold in line with market expectations, according to agents.
It’s a lower figure than the $200 million-plus expectations of co-owners Star Entertainment Group and Far East Consortium.
Star appointed Sam McVay and Dan McVay of McVay Real Estate, Adam Bury and Taylor O’Brien of JLL, and Karen Wales and Steven King of Colliers to manage the international expressions-of-interest campaign.
In a statement to the ASX, Star Entertainment Group said the sale represented a multiple of 21 times estimated calendar year 2023 EBITDA—an industry standard measure—and a price of about $650,000 per key.
The group acquired the Sheraton Mirage in 2017 for $140 million, and the sale was subject to the consortium receiving approval for the transfer of the liquor licence from the Queensland government.
The Laundy and Karedis families jointly own a number of high-profile beachfront hotels, including the Sofitel at Noosa, Manly Pacific, and Crown Plaza at Terrigal.
Colliers head of hotel transactions Karen Wales said the sale was indicative of investor confidence in the Australian hotel market.
“The sale of the Sheraton Grand Mirage Resort, which boasts a prime beachfront location, represents an uplift of more than 80 per cent 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.
“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.”
Colliers research shows Gold Coast luxury room rates have reached an average of $485 per night over the past 12 months, while the average room rate across the board was $275. This was a 40 per cent increase on the year to April 2019.
Star Entertainment Group chief executive Robbie Cooke said the group remained committed to one of the fastest-growing regions in Australia.
“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.”
