Outrigger Acquires Management Rights for Surfers Paradise Hotel
- Wednesday, 12 October 2011 14:00
Outrigger Hotels & Resorts has announced it had purchased the management rights and associated real estate assets of the hotel property currently operating as the Holiday Inn Surfers Paradise.
The sale includes the management rights from Colryan P/L (managers and receivers appointed) for up to 414 hotel rooms and the real estate assets from Seasilver Hotels P/L comprising reception, extensive conferencing areas, and restaurant and bar.
The contract is subject to the satisfaction of standard commercial conditions. However, it is expected to settle in late 2011 or early 2012 and the property will then be re-branded to Outrigger Surfers Paradise.
Outrigger Hotels & Resorts is a 64-year-old privately-held US company and one of the fastest growing hospitality groups in the Asia-Pacific and Oceania regions. The hotelier has a long association with the Gold Coast after selecting the destination as its base 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. Regional general manager-Australia, Grant James, said he was extremely confident in the future of the Gold Coast's tourism industry.
"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 2011/2012 period," Mr James said.
His belief in a rebounding domestic tourism market was echoed by the release last month of Tourism Australia's National Visitor Survey stating that domestic tourism was on the rise with June recording a jump in domestic travellers by 8%. "Despite current global economic woes, there is a lot of positive news coming out of the Gold Coast which includes the opening of two new five-star hotels, construction of the Gold Coast light rail and planned runway extension at Gold Coast International Airport to allow direct flights from China.
"We are pleased to be back in the heart of Surfers Paradise and we're looking forward to working with local industry and operators and making a positive contribution to the local economy," Mr James added.
The addition of Outrigger Surfers Paradise boosts the hotelier's portfolio to four in Australia, which numbers close to ,000 rooms, and almost 11,200 rooms internationally.
The 23-level hotel opened in 1986 as Holiday Inn. In 1988 the hotel was purchased by All Nippon Airways and operated as ANA Hotel.
Raptis Group purchased the ANA Hotel in 2005. IHG was appointed hotel manager and the hotel was re-branded to Holiday Inn, Surfers Paradise. A major refurbishment was undertaken to the hotel rooms and key common areas of the hotel in 2005 and 2006.
In early 2009, Raptis Group's subsidiary companies (Colryan P/L and Seasilver Hotels P/L), which owned the hotel management rights and its associated real estate assets, were placed into receivership (with Ernst & Young being appointed as the receivers and managers of certain assets of Colryan and Seasilver Hotels. In early 2011, the receivers and managers of Colryan and Seasilver Hotels offered for sale the management rights for the hotel and its associated real estate assets comprising of the reception, extensive conferencing areas and the restaurant and bar.
The management rights sale was negotiated by Gold Coast based MR Sales.
Outrigger has purchased the management rights to up to 414 hotel rooms, lobby, reception, extensive conferencing and meeting areas, business centre and restaurant and bar. The sale is subject to the satisfaction of standard commercial conditions. However, settlement is expected in late 2011 or early 2012, at which time the property will be re-branded Outrigger Surfers Paradise.
Upon settlement, Outrigger Hotels & Resorts will own the management rights for approximately10 years with a 10-year option. In accordance with Outrigger's corporate policy, the sale price remains confidential.
