The Grand Hotel Chancellor, a 4.5 star hotel in Surfers Paradise, was sold to Challenger Ltd for $80 million.
A four and a half star hotel in Surfers Paradise on the Gold Coast has changed hands at $80 million with $77.41 million attributed to the freehold and $2.59 million paid for the business. The property was sold by Hotel Grand Chancellor (Surfers Paradise) Pty Ltd, a company that is ultimately owned by Hotel Grand Central Ltd. Hotel Grand Central develops, owns and operates hotels in Australia, New Zealand, Malaysia, Singapore and China. It is a Singaporean company which listed on the Singapore Stock Exchange in 1978. The sale was brokered by Dan and Sam McVay of McVay Real Estate.
The purchaser, Challenger Limited, is believed to have bought the property on behalf of an offshore group. Challenger is an investment management firm which listed on the Australian Securities Exchange in 1987. It currently has $57.4 billion in assets under management. The new owner reportedly is planning a major makeover for the property.
According to Gold Coast Cityscope the hotel currently comprises 404 rooms over 31 levels, a bar and restaurant on level 1, 6 conference rooms which can cater for up to 600 people with 627 sqm total, pool, spa, tennis court, gymnasium and several levels of car parking. The hotel underwent a $1 million refurbishment of the hotel lobby and other non-accommodation areas including the creation of Hanlan's Lounge Bar in 1994 and a further $6 million refurbishment of all hotel rooms in 1996.
The hotel and business last traded at $47 million in 2010 and incurred further purchase and refurbishment costs of $8.75 million. According to the vendor’s SGX announcement, this sale allows them to realise its investment in this hotel asset. It also reflects the market’s continuing confidence in the future of Surfers Paradise as a prominent Australian tourist destination.