The impending sale of Vibe Hotel Melbourne to an undisclosed offshore investor demonstrates the continued confidence being shown in the sector, JLL Hotels and Hospitality Group says.

Opened in May 2020, Vibe Hotel Melbourne features 206 guest rooms with views across the Yarra River, a restaurant & bar, conference facilities, gymnasium and indoor swimming pool.

It occupies a large 737sqm freehold site and retains the historically significant Fletcher Jones and Staff building façade at ground level.

JLL has announced the venue is now in the process of being sold by Caydon to an undisclosed offshore investor in a transaction being brokered by Peter Harper and Craig Collins.

At a glance:

• Vibe Hotel Melbourne is in the process of being sold by Caydon to an undlisclosed offshore investor.
• Opened in May 2020, Vibe Hotel Melbourne features 206 guest rooms with views across the Yarra River, a restaurant & bar, conference facilities, gymnasium and indoor swimming pool.
• The transaction is being brokered by JLL Hotels and Hospitality Group Managing Director – Head of Investment Sales Australasia, Peter Harper, and Australasia CEO Craig Collins.

The transaction follows several other recent notable sales across Melbourne including the Ibis Little Bourke Street, Holiday Inn Melbourne Airport, Next Hotel Melbourne (under construction) and Pullman Melbourne on the Park, all of which were brokered by JLL. 

Mr Harper said most investors recognised that relative to the size of the market, Melbourne hotels were "incredibly tightly held".

“This is the first sale of a major operating Melbourne CBD hotel for several years," he said.

"Regardless of the environment, investors know they need to act decisively to secure high quality opportunities when presented.

Mr Collins said offshore investors had always been attracted to the Australian hotel market due to its strong underlying fundamentals and positive long-term outlook.

"This is no different in the current environment as, on a daily basis, investors have been expressing their desire to enter the market or grow their existing holdings," he said.

"Whilst this is just one of two major hotel transactions to occur nationally this year, there would no doubt have been more had existing owners not delayed their divestment strategies.

"We are confident that all quality offerings put to the market in the coming months will be keenly contested.”

Caydon Principal Joe Russo said the company was proud to deliver another quality hotel .

“The property is a fantastic addition to the Melbourne hotel market and will quickly become the pre-eminent upscale offering," he said.

Similar to this: 

TFE Hotels announce opening date for Vibe Melbourne

TFE Hotels to open its tenth Vibe Hotel in Melbourne CBD

Vibe Hotel Marysville for sale - JLL Hotels & Hospitality Group