The tightly held Melbourne hotel market will see its first major mid-scale hotel offering for 2017 with the Ibis Budget Melbourne CBD being marketed for sale this week. The move comes at a time when the Australian hotel market, and Melbourne in particular, is experiencing unprecedented investor interest in the face of limited quality investment opportunities.

The sale process is being handled by JLL Hotels & Hospitality Group’s Andrew Langsford and Peter Harper, together with CBRE Hotels’ Wayne Bunz and Scott Callow.

The three star hotel features 146 recently refurbished guest rooms, reception area, food & beverage outlet and other supporting facilities. With a prime CBD location on Elizabeth Street, between Collins and Bourke Streets, the hotel is within immediate proximity to the historic Flinders Street Station and many of Melbourne’s major demand drivers for the corporate, conferencing and leisure market segments.

The Ibis Budget Melbourne CBD is operated by AccorHotels, Australia’s largest hotel management company, under a long term agreement. Due to its management structure, market positioning and efficient operation, the hotel has demonstrated a strong and growing trading performance with excellent profit margins.

“Melbourne has witnessed several recent large scale hotel transactions including the Novotel on Collins and Hilton Melbourne South Wharf, while an announcement on the sale of the Sheraton Melbourne is expected soon. However, it’s been some time since a mid-scale hotel of this quality has been offered for sale, this demonstrates just how tightly held the market is. We are therefore expecting strong interest from traditional investors as well as new entrants to the market,” said Andrew Langsford.

“Australia remains a strong focus of international hotel investors because of the excellent growth in international tourism, strong domestic market and the fundamental transparency and safety of the real estate market. Melbourne enjoys the added benefit of being known as the events capital of Australia, with a mixture of major sporting events coupled with numerous arts/cultural and business conventions, underpinning exceptional market-wide hotel trading performance,” added Wayne Bunz.

This prime hotel investment opportunity, located in one of Asia Pacific’s most sought after hotel investment destinations, is being offered for sale by way of a public International Expression of Interest (“EOI”) campaign closing 1:00pm (AEST) Thursday 1 June 2017.

For further information please contact the exclusive agencies, JLL Hotels & Hospitality Group and CBRE Hotels.

See also:

Get to Know Peter Harper - Executive Vice President, Investment Sales of JLL Hotels & Hospitality Group

Get to know Wayne Bunz - National Director of CBRE Hotels