Vibe Hotel Gold Coast and Surfers Pavilion Offering Provides Unmatched Potential and Opportunity on Booming Gold Coast

Vibe Hotel Gold Coast and Surfers Pavilion is being exclusively brought to market by JLL’s Hotels & Hospitality Group in what is one of the most exciting hospitality offerings of 2024. The sizeable freehold land parcel of almost 4,700sqm provides one of the country’s most unique positionings given the almost 90m of direct river frontage, whilst the hotel’s 22-storey tower, which is home to 199 rooms, has incredible views of the Pacific Ocean, the iconic Surfers Paradise Beach and of the rolling hills of the Gold Coast hinterland. The sale is being handled by JLL’s Adam Bury, Tim Jones and Tom Gleeson.

In addition to the Vibe Hotel Gold Coast, which features a river-fronting swimming pool with pool bar and restaurant, the offering includes the 600+ pax capacity Surfers Pavilion, currently leased by Artesian Hospitality, and 35 gaming machines - which have rapidly increased in value over the past 24 months. Completing the offering is a marina which fronts both the hotel and Surfers Pavilion.

Adam Bury, Executive Vice President at JLL Hotels who is managing the sale commented, “This is genuinely one of the most exciting opportunities we have seen come to market in the past couple of years. The land-rich offering and combination of in-place hotel, pub and gaming, is unique within the market. Currently managed by TFE, the hotel will be available with vacant possession on sale, ensuring that the optionality presented to incoming investors is unrivalled”.

The Gold Coast market continues to go from strength to strength, with limited new supply scheduled to be opened in the upper and upper-upscale space. Occupancy continues to rebound, with STR May YTD numbers showing the Gold Coast to have increased 3% on the same period last year, whilst RevPAR sits 35% up for YTD May 2024 in comparison to the same period in 2019. With the hotel offering near-term vacant possession, investors are likely to consider a range of operating models and solutions for the property.

Bury added, “In 2023, we saw incredibly strong demand from investors for the Sheraton Grand Mirage in what was a landmark transaction for the Gold Coast, and the wider South East Queensland region. With the qualities, attributes and pricing point being presented, combined with the continued growth in the Gold Coast economy and its attractiveness to residents, businesses and tourists, we expect to see exceptionally strong interest in the property from local, interstate and international purchasers”.

Whilst the property will appeal to investors focused on its ability to drive income from the hospitality businesses, it is expected that a number of active Gold Coast developers may also explore the opportunity. The Gold Coast remains one of the most sought-after residential destinations in Australia and sits only behind Sydney for median unit price.
Tim Jones, Director, Capital Markets at JLL Brisbane, noted “We’ve been particularly active with waterfront development sites over the past twelve months across the Gold Coast. The Vibe Hotel Gold Coast and Surfers Pavilion will be attractive to developers noting the in-place income and with the existing improvements split into two notable and distinct uses, a two-stage development is very much viable.”

JLL Hotels & Hospitality Group remains the leading advisor for coastal properties in Australia, having transacted approximately $400m of sales in the past twelve months in South East Queensland and Northern New South Wales alone. Notable transactions included the $192m Sheraton Grand Mirage Gold Coast in a record transaction for the state, followed by the sales of Mercure Kawana Waters to the NRL in late 2023 and Vali Byron Bay for circa $30m in late 2023. The team has recently announced the sale of the Blue Dolphin Holiday Park to NRMA in the most significant transaction the holiday park market has seen and further deal announcements are expected in the coming weeks.

JLL Hotels & Hospitality Group, 2^nd July 2024