Chinese investors buy Palazzo Versace Hotel in Australia

Palazzo Versace Hotel, Gold Coast, Australia

The Australian daily newspaper reports that two Chinese companies have entered a joint venture deal to acquire the stunning Palazzo Versace Hotel on the Gold Coast. $A 80 million was the original price tag on the luxurious hotel, but the two companies snapped up the hotel for a bargain price of $A68.5 million.  It’s understood that the hotel was bought by the Chinese in a bid to develop more of the iconic properties throughout maintland China.

The two companies who are now the proud owners of the hotel are revealed as a Hong Kong construction house and a Chinese travel company, but other than that, little information is known. “Their intention is to build a number of these hotels branded Versace and (use) it as a launching pad to roll out these branded hotels in China,” a source close to the negotiation told The Australian.

Property developers Sunland signed an agreement with the Italian fashion house to develop several Versace branded hotels across the world in the late 1990s. The Gold Coast hotel was the first and it was thought that there would be a succession of hotels with James Packer being an investor. Chinese investors still see Australia as an attractive investment with hotels and resorts on their shopping list. The Chinese travelers also see Australia as a good place to visit, with arrivals rising by 19.4 per cent in June and 16.7 per cent for the financial year, to 583,200.

Earlier this year, Chinese cable television magnate William Han paid $A12 million for Lindeman Island, whilst Fullshare group is developing the Whisper Bay resort near Airlie Beach.

Sunland sold last year its stake in a second Palazzo Versace Hotel in Dubai, currently under construction. The new owner and developer of the project is UAE based Enshaa. The project has been stalled and there is no estimated opening.