Star Entertainment’s $140 million Sheraton Mirage deal
Star Entertainment has finalised the sale of the $140 million Sheraton Mirage.
The hotel now becomes part of a deal involving Star Entertainment and Hong Kong developer Far East Consortium and retailer Chow Tai Fook.
Star will have a 50 per cent share in the resort and the two Hong Kong parties will hold 25 per cent apiece.
The resort purchase involved an equity investment of approximately $40 million from The Star Entertainment Group.
The plan is to turn the resort into a major force in Queensland’s tourism industry, rivalling James Packer’s Crown Resorts in the key south-east Queensland market.
It will be the Gold Coast’s only 5-star beachfront resort
The consortium plans to revamp the Sheraton and fit it with a design to complement Queen’s Wharf and the nearby Jupiters Hotel and Casino on the Broadbeach Island.
The deal was done through the Destination Gold Coast Investments fund which snapped up the obscure Australian Wattle Developments that held an option to purchase the Sheraton Mirage.
Marriott International runs the hotel on a long-term management plan.
The plan is to avoid any high rise development or a gaming facility. Instead, the focus will be on overhauling the ageing resort in tandem with the exiting operator.
“We believe as an offering it will also provide a perfect complement to our existing properties where transformational developments are underway or set to proceed at Jupiters Gold Coast, Queen’s Wharf Brisbane and The Star Sydney,” Matt Bekier, Managing Director and Chief Executive Officer, The Star Entertainment Group said.
“The opportunity to offer our guests diverse and world-class experiences, and enjoy a mix of urban and beachfront luxury, is enhanced by this acquisition.
“The Star Entertainment Group views the tourism sector as a significant long-term economic driver for Queensland and Australia, and the purchase of the Sheraton Grand Mirage reflects that confidence.”
by Leon Gettler, January 30th 2017
