Trouble in paradise as another Queensland resort goes under
The $150 million Couran Cove Island Resort on the Gold Coast is to be sold after closing due to low occupancy rates and rising costs.
An official announcement by corporate recovery firm Ferrier Hodgson is due to be made later today. It is understood the business has entered into a members’ voluntary liquidation arrangement.
The resort is the latest in a line of Queensland resorts that have been sold, closed or placed into receivership, with their collapse blamed on the GFC, natural disasters and a drop in tourism.
“Over the past 13 years considerable time, energy and money has been invested to create the premium resort Couran Cove is today,'' a spokesman told the Gold Coast Bulletin's website.
''The resort has been operating at a considerable loss for a number of years and sadly, despite our best efforts, this is an unsustainable position for any business operation.
''This is the most sensible course of action for the business and its shareholders, and the decision was made after much consideration and deliberation by the board.''
Among prominent Queensland resorts currently being sold on behalf of receivers are the 104-room Hotel M and Metropole Hotel, in Townsville (marketed by Jones Lang LaSalle) and the 42-room Lagoons@Port Apartments in Port Douglas (marketed by CB Richard Ellis).
In May 2010 the RACV bought the 149-room luxury Noosa Sanctuary apartment complex for an average price of just $400,000 an apartment. Developers had been expected to sell each apartment for an average of well over $1.5 million.
Palm Bay retreat on Long island near Townsville and Bale Resort in Port Douglas closed earlier this year.
Couran Cove is owned by InterPacific Group (Australia). It was developed in 1998 by American businessman Chuck Feeney, who reportedly lost more than $280 million in the venture. It is comprised of a mix of apartments, lodges and villas, some of which are privately owned.
InterPacific's other resorts include Pacific Islands Club Guam, Pacific Islands Club Saipan, Laguna Beach Resort in Phuket, Thailand and Bali Golf and Country Club in Nusa Dua, Bali.