if the hotel could be sold for more than $80m, it should be modified to studio, 200 * $400,000 = $80m plus all other facilities and shop could be sold more than $20m....
please refer this 1 bedroom apartment asking for $500,000:
1054/1 Lennie Avenue, Main Beach, Qld 4217
http://www.realestate.com.au/property-apartment-qld-main+beach-110703301