Gold Coast Palazzo Versace Hotel set to be sold for $114M
Shakespeare Property Group, the commercial property arm of Prime Value which manages a $1 billion portfolio comprising Australian equities, cash-like instruments, retail, office and hotel properties, and agricultural assets, is about to sign off on the purchase of the Gold Coast’s Palazzo Versace Hotel.
The Melbourne-based property group is said to have an exclusive deal in place to purchase the Palazzo for $114 million.
The hotel, which opened in 2000, describes itself as a 6-star resort and has attracted many celebrities such as U2’s Bono, Snoop Dogg, Beyonce and Jay Z.
It recently had a multimillion-dollar makeover where some rooms have been totally revamped to make it more appealing for sale.
China’s Dong Run Group acquired the 200-room luxury hotel for $68.5 million in 2012 through Nanbai Australia.
Nanbai was set up by chairman Jing Lin Zuo and other Chinese and Australian-based shareholders.
The consortium has managed the effect of the pandemic well, reporting strong sales in the luxury hotel and resorts division. The group holds billions of dollars’ worth of assets, which it purchased pre the lockdowns of 2020.
However, the Palazzo hasn’t fared so well. Due to the pandemic’s effect on occupancy and trade tensions between Australia and China, the group decided to put the famed hotel on the market.
It is hoped they can cash in on the high demand and high prices for commercial properties in the hospitality sector.
The money will then be used to fund other ventures.
Irit Jackson, 5th May 2022
