US-based hotelier renews investment in Surfers Paradise
Outrigger Hotels and Resorts has purchased the management rights of the hotel property currently operating as the Holiday Inn Surfers Paradise.
The sale includes the real estate assets comprising reception, extensive conferencing areas, and restaurant and bar.
The 414-room property will be re-branded to Outrigger Surfers Paradise.
Outrigger Hotels & Resorts is a 64-year-old privately-held US company whose association with the Gold Coast dates back to its decision to expand the brand from the US into Australia in 1998.
“The company’s decision to invest in Surfers Paradise’s tourism sector is also a major show of confidence it has for the Gold Coast and builds upon the presence of its Australian head office in Surfers Paradise,” Outrigger regional general manager Grant James says.
“The Gold Coast has fared much better than other regions in Queensland, which can be evidenced by our other Gold Coast resort at Coolangatta eclipsing revenue and occupancy forecasts for the 2011-12 period,” James says.
His belief had been shaped by data from Tourism Australia’s National Visitor Survey stating that domestic tourism was on the rise, with June recording a jump in domestic travellers by 8%.
The addition of Outrigger Surfers Paradise boosts the hotelier’s portfolio to four in Australia. The company owns about 1,000 rooms in Australia, and 11,200 rooms internationally.
Located on a prominent site on Gold Coast Highway and fronting View Avenue, the hotel is 100 metres from the beach and one block from Cavill Avenue. Built in 1986, the 23-level hotel opened as Holiday Inn. In 1988 the hotel was purchased by All Nippon Airways and operated as ANA Hotel. The Raptis Group purchased the ANA Hotel in 2005.
In early 2009, Raptis Group’s subsidiary companies (Colryan Pty Ltd and Seasilver Hotels Pty Ltd), which owned the hotel management rights and its associated real estate assets, were placed into receivership with Ernst & Young the receivers and managers.
The management rights sale was negotiated by Gold Coast based MR Sales.
Upon settlement, Outrigger Hotels and Resorts will own the management rights for approximately 10 years with a 10-year option.
In accordance with Outrigger’s corporate policy, the sale price remains confidential.
