Star sells off Gold Coast Sheraton as shares continue to fall
Star Entertainment has sold its Sheraton Grand Mirage for $192 million to the Karedis and Laundy families.
The Sheraton Mirage which has been sold by Star (Photo: Queensland.com)
It follows the collapse recently of its $280 million deal announced in 2021 to sell and lease back the Treasury building in Brisbane which was part of Star’s transition to the $3 billion Queen’s Wharf casino development.
Charter Hall backed out of that deal but did not provide a reason.
The latest deal adds another chapter to the story of the hotel, which was built by Christopher Skase in the 1980s. It also provides a paper profit for Australian Wattle Development which owned the asset and is 50 per cent owned by Star.
It bought the hotel in 2017 for $140 million.
Star said the sale represented a 2023 EBITDA multiple of 21 times and $650,000 per hotel room.
The Laundy family, headed by Arthur Laundy, earlier this year bought out Fraser Short’s share of a chain of hotel assets for $150 million.
The deal also still needs the approval of the Queensland Office of Liquor and Gaming.
The sale was done to help Star deal with its heavy penalties stemming from two hearings in NSW and Queensland relating to money laundering and compliance.
Both states fined the company $100 million and NSW.
Star’s shares have dropped to close to $1. In November they were trading for $2.76.
