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Case Study

Kirra Beach Hotel, Gold Coast - The result of strategic agency thinking

The oceanfront Kirra Beach Hotel was a dilapidated, under-performing hotel in a prime Gold Coast location, which had been offered for sale by competitor agents for two years unsuccessfully.  With no acceptable offers presented the owners Redcape and Hedz were faced with deteriorating levels of trade and significant capital expenditure requirements.
 
Identifying the iconic location nature of this hotel, Jones Lang LaSalle's Hotels & Hospitality Group formulated a divestment strategy for stakeholders that would elevate the hotel uniquely in the national market and communicate the opportunity more aspirationally and extensively than ever before.
 
We were able to re-engage buyers with the irreplaceable qualities of the site whilst communicating the potential business upside based on a strong trading history and the reality that the hotel was one of the last undeveloped true ocean front hotel opportunities in Australia.  An understanding of the investment metrics for purchasers with significant equity was key to transaction completion.
 
Jones Lang LaSalle executed an international ‘three stage’ Expression of Interest programme, which generated the largest enquiry list for any Queensland hotel offered for sale in 2010. This resulted in eight offers for the hotel from overseas and interstate parties many at significantly higher levels than previously received by the stakeholders. The creative targeted use of all advertising mediums, striking aerial and ocean ‘horizon-style’ imagery and long term Gold Coast demographic analysis struck a chord with multiple new purchasers. The outcome for stakeholders was maximised and the hotel was sold for $15 million – an exceptional outcome for a one-off hotel asset showing a going concern yield of just 4%.​

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