The Australian reports he will spend an additional $20 million over 18 months to make the site a four-star hotel, with room rates at a low $100 to $200 per night.
With conference facilities and a ballroom, the 10 hectare estate also includes three lakes, a walking track, two pools, basketball, squash and tennis courts.
Originally a high end facility when known as the Peppers Fairmont Resort before 2006, the hotel has become neglected in recent years.
Mr Schwartz’s family company also owns the Newcastle Crowne Plaza, the Victoria Hotel in Melbourne and the Olims Hotel in Canberra. In Sydney the businessman and philanthropist is reported to own six hotels including the Mercure in George Street, the Hotel Ibis and the Sebel in Surry Hills.
The Australian also reports iron ore businessman Clive Palmer has inspected the Sheraton Mirage Port Douglas resort, along with Crown Casino founder, Melbourne-based Lloyd Williams.