Surfers Paradise to shirk its sorry reputation with rebirth of hotels scene

The Gold Coast’s, and specifically Surfers Paradise’s, hotel transformation is taking shape and is evolving from its dated stereotype.

This comes as mayor Tom Tate settled on a new marketing slogan to propel the Gold Coast into the next chapter, titled ‘A city that says yes’. It’s a move away from the ‘glitter strip’ moniker the city has held for years.

The Gold Coast Bulletin reports that Brand Gold Coast spent more than a year developing the marketing initiative.

While this was happening, a new wave of high-end hotel developments and refurbishments was pushing to revitalise the Gold Coast hotel market’s tired and dated stereotype.

The ‘meaningful repositioning’ has been marked by the opening of the Langham Gold Coast, Dorsett Gold Coast and the Mondrian Gold Coast in Burleigh Heads.

Colliers Head of Hotels Australia Karen Wales said at the same time several legacy assets, including the Sheraton Mirage, JW Marriott and the Vibe Hotel assets were being extensively repositioned.

“These developments are transformational in shifting the market away from historically dominant strata accommodation with limited services and toward full-service hotels and globally branded lifestyle product,” she told realcommercial.com.au

The result has been a repositioning from a historically “dated” 1980s-90s perception to a more contemporary, design-led and internationally competitive destination.

Novotel Surfers Paradise is the Gold Coast’s biggest hotel. Source: JLL

Ms Wales said the shift has elevated investor confidence and the Gold Coast’s ability to attract luxury and lifestyle travellers.

During the past decade, she said the hotel market’s evolution has been characterised by a move towards luxury and upper-upscale products, which has been evident via the growing depth of internationally branded hotels and an increased consumer willingness to pay for premium experiences.

Additionally, there has been a transition from the market historically being dominated by apartments to full-service hotels, lifestyle-led assets, as well as integrated resort-style offerings, Ms Wales said.

“Everything has been evolving around Surfers Paradise, but I think as the recent years have gone on developers are definitely looking for an opportunity,” said Angus Cottrell from Canford Estate Agents, Chevron Island.

“To look in Surfers Paradise, you’re probably seeing a lot of redevelopment on the southern end, near Garfield terrace, and sort of through the northern area, but I think there’ll be a revitalisation of Surfers Paradise.

“It’s still the tourist hotspot on the Gold Coast, so plenty of people are still flocking to the area.”

Gold Coast mayor Tom Tate has announced a ‘A city that says yes’ marketing slogan. Picture: Chris Hyde/Getty Images.

Knight Frank Gold Coast principal and licensee George Parzis said the area has moved as such that its demographics have changed.

“At one stage, Surfers did have a lot of the exclusive brands located, and they moved down to Pacific Fair, so it’s changing, it’s evolving,” he said.

“It’s more tourism based now, or activities… you’ve got your escape rooms, all those sort of novelty services that are offered now, and attracting the type people who want to have a holiday to enjoy themselves and go to various types of entertainment.”

Buyer interest hindered by a tight market

Buyer demand remains consistently strong in the Gold Coast, however it was constrained by a chronic lack of institutional-grade opportunities.

“The Gold Coast remains a highly fragmented ownership market,” Ms Wales said.

However, a significant prevalence of strata-titled accommodation and a limited availability of freehold hotel assets were restricting transaction volumes despite deep capital demand, she said.

Surfers Paradise is getting attention from Asian capital markets. Picture: JLL

Key buyer groups include offshore investors, particularly from Asia-Pacific, who continued to be attracted to the Gold Coast’s global leisure appeal, as well as private equity/value-add capital, targeting repositioning strategies.

High net-worth domestic investors, often with a lifestyle bias, were still drawn to the area, Ms Wales said.

“More broadly, the leisure segment remains a dominant demand driver, with sustained prioritisation of travel and experiences post-pandemic increasing willingness to spend on premium accommodation.”

Ms Wales noted that supply constraints remained a key theme in the Gold Coast hotel market, and development viability was challenged by construction costs and planning constraints.

“Overall, the Gold Coast hotel market has moved into a structurally stronger phase, characterised by higher-quality assets, improved global positioning, and sustained investor demand, albeit within a tightly constrained transaction environment,” she said.

Experts say the Gold Coast is evolving as a more mature market. Picture: Lisa Allen

Record breaking beachfront deal

Earlier this month, JLL sold the city’s largest hotel, Novotel Surfers Paradise, and a major retail and entertainment hub Paradise Centre on Cavill Avenue for a record $346.5 million.

Adam Bury, JLL executive vice president investment sales for Australasia, said the deal represented the largest mixed-use hotel and retail transaction in Queensland’s history.

Mr Bury said the beachfront position was “the cornerstone of the world-renowned Gold Coast precinct”.

The sale of the Novotel precinct represents one of the largest transactions on the Gold Coast. Picture: JLL

“The property is a unique mixed-use development that integrates accommodation, retail, dining, wellness and entertainment, creating a precinct that capitalises on the region’s robust visitor economy.”

The beachfront precinct was snapped up by Taiwanese billionaire, Lin Chen-hai, who has been listed by Forbes as among Taiwan’s 20 richest people.

Prime Surfers Paradise listings ripe for development

Huge beachfront asset up for grabs

A rare beachfront asset spanning 4,044sqm in the northern pocket of Surfers Paradise has hit the market with 89 of the 102 strata lots located within the established Equinox Sun Resort.

Equinox Sun Resort, situated at 2-102, 3458 Main Beach Parade, Surfers Paradise, has dual frontages to Main Beach Parade and Ferny Avenue, and is being sold via an Expressions of Interest campaign.

The Equinox Sun Resort is for sale at the northern end of Surfers Paradise. Picture: realcommercial.com.au

“There’s been a lot of interest in the property. We’re still talking with a couple of groups in advanced negotiations, but just trying to place the right buyer … it is quite a substantial site,” Canford’s Mr Cottrell said.

Comprising a mix of studio apartments, dual key studio apartments and commercial premises, the complex also features resort-style facilities such as a swimming pool, sauna, gym, tennis court, and games room.

Its high density residential zoning from the Gold Coast City Council offers flexibility for investors and developers, the listing notes.

Central Surfers Paradise location

With price expectations above $7 million, 21 Orchid Avenue is a rare investment or development opportunity located in the heart of Surfers Paradise.

Set on a 945sqm landholding, the building spans 2,081sqm across two levels and a basement.

This prime lot on Orchid Avenue is for sale has the potential to be developed into a backpackers-type hostel. Picture: realcommercial.com.au

Suited to an entertainment offering, accommodation, restaurant or bar/club, sales agent George Parzis, from Knight Frank Gold Coast, said the site has a development application for a backpacker hostel.

A previous approval was granted to transform the site into a high-rise hotel comprising 270 rooms.