Iconic Phillip Island resort development site re-listed along with neighbouring Continental Hotel

The Continental Hotel and the adjoining historic Isle of Wight Resort Hotel site in Cowes on Phillip Island have been listed for sale with a combined price tag around the $25 million mark.

They are available for purchase separately or in one line.

The iconic Isle of Wight hotel burned down in May 2010.

Built in the 1920s, the hotel played host to Fred Astaire, Ava Gardner and Gregory Peck during their filming of the 1959 movie On the Beach in 1958.

Property Observer reported on a listing of the Isle of Wight Resort Hotel site in September last year with its approval for a nine-storey residential resort development and $9 million-plus hopes.

The 9,197-square-metre vacant site offers oceanfront views and is located adjacent to the Continental Hotel on a site measuring 9,097 square metres.

Both properties are being sold by Terry Board from TJ Board & Sons and Mathew George from Jones Lang LaSalle Hotels.

Board tells Property Observer there has been strong enquiries on both properties and he is expecting them to sell.

“There has been corporate interest, development interest and interest from hotel people with regard to the Continental,” says Board.

The permit to develop the Isle of Wight Resort Hotel site has since expired.

Board says the vendor has realistic expectations of $10 million for the Isle of Wight site and at least $15 million for the Continental hotel.

Both properties are owned by Sydney-based hoteliers and business owners, the Gearing family.

The Gearing family acquired the Continental about 10 years ago and has owned the Isle of Wight site property since 1982.

Operating since 1976, the 9,097-square-metre Continental hotel is located on one of the most sought-after locations on the island, overlooking French Island and The Mornington Peninsula.

The three-star hotel had additions completed in 1995 and 1998 and comprises of 62 guest rooms, ranging from hotel style to self-contained accommodation.

The hotel facilities include two restaurants, conference rooms, an outdoor swimming pool, barbecue pavilion and on-site parking.

The Island of Wight Bar is a sports-style bar located on the ground floor and forms part of the overall business. It offers TAB facilities, bistro dining, a large outdoor terrace and can hold up to 382 patrons.

In the last financial year, the Continental Hotel had a 50% occupancy rate and total revenue of $3,718,455, with a net operating profit of $1,578,056.

The Continental Hotel also comes with 27 electronic gaming machines, which could contribute between $800,000 to $900,000 to the asset's profile.

Phillip Island has 3.5 million visitors annually and is a famous tourist destination due to the Island’s famous penguin parade.

Room occupancy rates in Victoria increased by 1.0% to 68.4% in the March 2012 quarter compared with the March 2011 quarter.

Phillip Island hotels increased 6% to an occupancy rate of 62.9%.

Victoria’s total accommodation takings in the March 2012 quarter increased by 7.6% over the March 2011 quarters to $446 million.

Phillip Island had a 3.1% growth in accommodation takings to $6.3 million.

Phillip Island receives about 3.5 million visitors every year and has a rapidly growing residential population comprising around 9,500 people.

An expressions of interest campaign closes on October 24.