Projects - Distressed Assets
Outrigger Resort Hotel
Receivership of underperforming hotel units
Summary
- Tourism and hospitality
- Appointed to 104 rooms
- Outrigger Resort, Gold Coast, Qld
- Agent for financier
- Senior Debt ($20m)
Issues
- 404-room 4.5-star hotel in Surfers Paradise, Gold Coast. Built in 1986, extensively refurbished in 2014
- The majority of the 414 hotel rooms were under external administration, however many rooms had been recently sold
- Limited market interest by various parties, for a one-line sale
- Cash flow positive. New management appointed (Outrigger)
Solution
- Managed income and worked closely with Outrigger
- Sold some suites on an individual basis
- Identified off-market one-line purchaser for balance
Outcome
- All hotel suites were sold at a 14% premium to valuation within 6-months.