Burgess Rawson’s Tom Lawrence and Craig Chapman market a landmark hotel asset, Diggers and Sports Club at Levels 1 & 2, 9 Beach Road Surfers Paradise for sale.
Alandmark hotel asset in the heart of Surfers Paradise has hit the market, offering investors a rare opportunity to secure a premium venue with significant rental upside to a long-standing tenant, on-site for over 30 years.
Listed for sale by Burgess Rawson’s Tom Lawrence and Craig Chapman, the standalone property at Levels 1 & 2, 9 Beach Road, is home to the esteemed Diggers and Sports Club, an iconic establishment that has been a cornerstone of the local hospitality scene for generations.
The expansive 2,243sqm venue, boasting a 730-patron capacity, underwent a $3 million premium fitout in 2020, featuring a high-quality restaurant, entertainment rooms, TAB, and a fully equipped gaming area with 67 machines.
The current six-year net lease extends to September 2027, with options available until 2037. With a net income of $247,200 per annum plus GST and fixed 3% annual rent increases, this asset presents a highly appealing investment proposition.
Mr Lawrence said Surfers Paradise continues to attract strong visitor numbers, with over four million people generating $7.7 billion in expenditure annually. The venue is strategically located, benefiting from the area’s high foot traffic and ongoing investment in the precinct.
Mr Chapman added that the property’s uncapped 2027 market review offers considerable rental upside. “With a lease structure where the tenant covers 100% of outgoings, this is an opportunity for investors seeking strong cash flow in a high-growth market. Given the property’s uncapped 2027 market review, investors have the potential to capitalise on significant rental growth in just over two years’ time’.
According to the agents, the Gold Coast’s economy, valued at $40 billion, continues to thrive, with construction, retail, and hospitality leading its expansion. Tourism remains a key driver, with visitor spending in 2024 surging 31.1% above pre-pandemic levels, reaching $7.8 billion. Property values in Surfers Paradise have also experienced significant growth, with some areas seeing price increases of up to 92% since 2020.
Further bolstering the precinct’s appeal, fast-food giant Wendy’s recently chose Surfers Paradise for its Australian relaunch, opening its flagship store on Cavill Avenue. The decision underscores the area’s economic vitality and global recognition as a premier destination.
The property is for sale by Expressions of Interest, closing at 3pm AEDT on Wednesday, 2 April.
The Hotel Conversation