The new $400 million, 700-key hotel and apartment tower at The Star Gold Coast is getting closer to fruition and sales of the apartments are due to start in the coming weeks.
It comes as more hotels and resorts are planned across the country to cater for increasing inbound tourism.
According to CBRE's ViewPoint report, the forecasted increase in visits by Chinese tourists is expected to rise to 3.2 million annually by 2025.
The national director of CBRE Hotels, Wayne Bunz, said while strong supply growth in Brisbane and Perth had previously placed downward pressure on room rates, if tourism volumes continued to increase both cities would be in the position to absorb the forecast influx of visitors.
"Despite the 60 per cent surge in tourist volumes, the research signals an increase will instead provide a relief valve for the hotels sector due to the current hotels supply boom. Australia's less heralded markets such as Brisbane and Perth, in particular, are expected to be key beneficiaries of the increase" the CBRE report says.
The Star tower is part of an overall planned investment of $850 million to expand the Broadbeach property, formerly known as Jupiters. It has been renamed to be consistent with The Star in Sydney, which is also developing a new Ritz-Carlton hotel adjoining the existing property. Both will open before the planned Crown resort at Barangaroo, Sydney.
A new six-star, 17-storey luxury hotel tower is under construction at the front of the The Star Gold Coast and will also be completed before the Gold Coast 2018 Commonwealth Games, which start next April.
The transformation will see The Star Gold Coast feature about 1400 premium hotel rooms and residences, more than 20 food and beverage offerings, new resort facilities, signature gaming facilities and retail outlets. The apartments will be known as The Star Residence.
Subject to pre-sales, preparatory works for the new 700-key complex are expected to start within the next 12 months. The tower is expected to be completed in 2021, after the completion of all other transformation works in progress at The Star Gold Coast – these include significant upgrades to food and beverage offerings.
The development comes as AMP Capital's Pacific Fair shopping centre opposite The Star has also been upgraded.
The development will be undertaken by the Destination Gold Coast Consortium – a joint venture between The Star Entertainment Group and its Hong Kong-based partners Chow Tai Fook and Far East Consortium.