Hotel mogul Dr Jerry Schwartz has acquired the Paradise Resort on the Gold Coast at a bargain bin price.
The former owner of the hotel, Ralan Group, has been offloading its properties and sites on the cheap after it fell into administration in late July this year.
Dr Schwartz, one of Australia's largest private hotel owners, will acquire Paradise Resort for $43 million; a significant discount to the $75 million Ralan Group paid for the hotel.
Paradise Resort is Schwartz's second Gold Coast hotel acquisition following his purchase of Hilton Surfers Paradise earlier this year.
The acquisition will increase the Schwartz Family Company network to 15 hotels and more than 3,500 rooms in Australia.
Schwartz says he was interested in Paradise Resort because of its reputation as a family-friendly facility and its high-quality offering for customers
"I know that previous owners planned to knock down the resort and redevelop it for apartments, but we believe there is tremendous demand for quality family-friendly resorts, especially in such prime locations as Surfers Paradise," says Dr Schwartz.
"Paradise Resort also has potential to grow further, and this purchase will give all those involved with the hotel certainty about the future."
"I am very optimistic about the Gold Coast market, despite new supply coming on stream. Both Paradise Resort and my previous purchase the Hilton Surfers Paradise have established very strong reputations, and with investment in both hotels, allied to sustained growth in Gold Coast's domestic and international markets, I see considerable upside for both properties."
The waterpark attractions at Paradise Resort are some of the biggest in Australia (Provided)
The sale of Paradise Resort follows two high-profile campaigns to divest the assets of the now in-administration property developer Ralan Group.
These include the crown jewel of Ralan Group's Gold Coast apartments project Ruby Apartments.
Ruby Apartments, a 30-level apartment complex in Surfers Paradise, was one of several developments that was left in the lurch by the Sydney-based company's downfall.
The completed apartment was just one of a planned 'Ruby Collection' that was never completed by Ralan before it fell into receivership. The complete Ruby Collection was to include the 30-level Ruby Apartments plus a further three towers.
With the management rights now on the market, Ralan's receivers Deloitte has appointed tourism and accommodation specialist agency ResortBrokers to find a buyer.
The neighbouring site has also been put up for sale. That site, named The Sapphire development, is now on the market, with vendor Frank Knight making the best out of a bad situation for Ralan.
The site is comprised of an entire city block at Budds Beach on the north end of Surfers Paradise.
Some lots on the site are vacant, while others are comprised of various single-level and double-level dwellings, and a super-lot fronting Ferny Avenue.
The real estate group says the opportunity presented to buyers is unique, in that it gives potential buyers plenty of options in terms of what exactly they want out of the land.
Ralan Group left a development pipeline of over 3,000 residential units and accommodation assets of over 600 rooms in the lurch at the time of its collapse and was in the process of a key build in Arnchliffe called The Orchid.
At the time of its collapse administrators Grant Thornton said Ralan Group owed around $500 million to creditors.
Business News Australia
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