Second hope for Novotel Twin Waters

Chinese carrier Hainan Airlines, which last year took an equity stake in Virgin Australia, in February pulled back from purchasing the iconic resort.

Hainan Airlines, China’s fourth-largest carrier, had been preparing to pay about $130 million for the property which just last year was on the selling Abacus fund’s books at about $67.5 million.

Commercial Insights: Subscribe to receive the latest news and updates

Hainan, like other mainland Chinese companies, may still be interested in the resort, although it missed out on buying the Sunshine Coast Airport last year.

Palisade Investment Partners — which owns Darwin, Alice Springs and Tennant Creek airports — bought the nearby airport and is expanding the facility.

McVay Real Estate is now marketing the 361-room four-star resort that is operated by Accor Australia.

The Sunshine Coast’s Novotel Twin Waters.

The property is adjacent to the airport and its redevelopment will boost flights and support an expansion of the hotel.

Since the expiry of the long term hotel management agreement in 2016, Accor has been renewed on a short-term basis and vacant possession is available, boosting the resort’s appeal to owner-operators.

The property also holds the potential to be redeveloped to accommodate a major increase in accommodation from mid-scale to luxury.

McVay managing director Sam McVay says it is rare for “an asset of this scale to be offered for sale with such a genuine growth story ahead of it”.

McVay chairman Dan McVay says the airport expansion and the opening of the new Sunshine Coast University Hospital will boost visitor numbers.

Abacus last year sold other hospitality assets, including the Rydges Tradewinds Cairns hotel and the Rydges Esplanade Cairns.

Novotel Twin Waters is the Abacus fund’s last remaining asset after unit holders voted for a sell down of assets two years ago.

This article originally appeared on www.theaustralian.com.au/property.