Coomera Garden Hotel on Sale

1. Overview of Coomera Garden Hotel Gold Coast Project

• Project Capital Size:  $109million AUD
• Project Brief: Coomera Garden Hotel Gold Coast is situated in 486 Foxwell Road, Coomera, and is designed to be a 4.5 star hotel and will join the franchising business of an international Hotel Management Group and serves as an international hotel.
• The hotel has 86 hotel service apartments each has internal floor area of 59m2 and 111 deluxe hotel rooms with 32 m2 each , 2500M2 shopping arcade including  Asian restaurants and Bar, Tavern, Asian Spa and Massage, Wedding Chapel and  Multi-function Hall as well 10,000 m2 Wedding Theme Garden.
• The subject Hotel has already a Development Approval from Gold Coast City Council in July 2016.
• Project Settlement: Year 2021

2. Investment in Building 2 or 3 in 43 Service Apartments

• Total Investment $23,779,000, GST Inclusive
• GST component is $2,161,727 and Net Price $21,617,272
• NP per Service Apartment = $502,727.25
• Total No of Service Apartment = 43
• All Two Bed Apartments with standard 4.5 Star Hotel Inclusion see inclusion list

• The Break Even Analysis is found at the room occupancy rate of 45%, where the trading income is $1,632,280 and the total expenses is $1,302,545 and the NPADBT is $329,735
• The stress testing shows that the NPADBIT is ranged from $635,788 at 50% to $1,859,998 at 90% assuming average $260 rental per day at 70% room occupancy rate.

• The Building 2 or 3 is sold for individual management under the same hotel license from CG Hotel Gold Coast.

3. Project Management

• Hutchison will the appointed Builder and Project Management Company which is ranged as no 1 builder in Queensland in size and is experienced to build 4 to 5 star hotels in Queensland.

• Ralph Preager of M & K Lawyers is appointed as Project Solicitor.

4. Investment Process and Timeframe

• Confidentiality Agreement. A Business Confidentiality Agreement is to be signed by both parties and will have 30-45 days due diligence investigation period.
• Access to IM or DD Data. The following documents are ready for DD Data:

o Development Approval from Gold Coast City Council

o Approved Plan from Gold Coast City Council

o Hotel Feasibility and Operation Study

o Construction Quote from Hutchison Construction Group

o Total Development Budget as prepared by an appointed Project Manager.

5. Payment Terms and Conditions

• 30% sign Hotel Investment Trust Agreement or
• 70% at settlement.