Following the collapse of the Ralan Group, owners of the Gold Coast’s Paradise Resort, comes news that Australia’s largest private hotel owner, Dr Jerry Schwartz, has acquired the property for $43 million, with final settlement planned for February 2020.
The addition of the Paradise Resort will increase the Schwartz Family Company network to 15 hotels and over 3500 rooms in four states and territories. It is the company’s second hotel on the Gold Coast, following the acquisition of Hilton Surfers Paradise earlier this year.
Paradise Resort has been consistently rated as Australia’s number one family resort over the past decade, and following the takeover, Dr Schwartz indicated that a major refurbishment program would be introduced to upgrade rooms, food and beverage outlets and other facilities.
Dr Schwartz said that he was attracted to the property because of its renown as a premier family-friendly resort, and while continuing to offer a highly attractive and good-value product, would also upgrade some rooms to 4/4.5-star standard so they can attract a wider market.
“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,” said Dr Schwartz.
“I have taken over two other resorts – the Fairmont Resort Blue Mountains and Crowne Plaza Hunter Valley – and revived them as a result of diversifying their markets and enhancing their family facilities and attractions. 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.”
Dr Schwartz said that it was ‘traditional’ for the Schwartz Family Company to organise a major charity event to mark the addition of a new hotel to the network, and given the property’s alignment with families, raising funds for family-focussed charities would be the priority for the event, scheduled for 29 February 2020.
