Japanese-owned Watermark Hotel Group has been sounding out buyers to acquire its two hotels in Brisbane and the Gold Coast, Watermark Hotel Brisbane and the Watermark Hotel & Spa Gold Coast.Â
It is understood the group went into due diligence with a buyer on an off-market basis to sell both properties for $110 million, but the deal fell through about two months ago.Â
Both businesses would remain intact while the properties are being considered for sale.Â
Watermark Hotel Group is owned by Japanese travel business and one of the world's largest vertical integrated travel companies H.I.S. Co Ltd, which has been in operation since 1980.Â
H.I.S. owns hotels, travel agencies and theme parks across 66 countries.Â
The Watermark hotel chain for the group includes the Brisbane and Gold Coast properties, the first two properties to launch, as well as the properties in Nagasaki, Sapporo and Bali.Â
The 4.5-star Watermark Hotel & Spa Gold Coast was the first to open in 1996 and is adjacent to SkyPoint Observation Deck on the beachfront in Surfers Paradise.Â
The second hotel in the chain, Watermark Hotel Brisbane, is opposite the Roma Street Parkland in the Brisbane CBD.Â
Hotel industry experts say while the hotel and property business on the Gold Coast has been thriving, Brisbane activity is still muted. This puts the Gold Coast Watermark asset at a higher value to the Brisbane asset for potential buyers, Savills' managing director Australia & NZ Hotels, Michael Simpson, said.Â
"Gold Coast is a quality asset," he said. "We are huge believers in the Gold Coast, even if the China market, the biggest source of business for the Gold Coast is slowing. There are other investors such as Malaysians, Singaporeans.
"Even China Eastern Airlines is flying directly to the Gold Coast, bypassing Brisbane.
"About six months ago, we said there would be some recovery in Brisbane in the next year, and in the lead-up to the Commonwealth Games."
A Watermark Group spokeswoman said the company was not selling the properties.Â
