Two of Melbourne’s best performing metropolitan hotels, the ibis Budget Dandenong and ibis Budget Fawkner, will be offered for sale next week in-one-line or individually.

JLL Hotels & Hospitality’s Peter Harper and Nick MacFie, have been exclusively retained to market the properties by way of an Expressions of Interest campaign.

Occupying a prominent 4,139sqm site on the corner of the Western Ring Road and Sydney Road, Ibis Budget Fawkner is located 15 kilometres north of the CBD, 10 minutes from Melbourne Airport and at the doorstep of the booming northern suburbs. It offers 103 well-presented guest rooms, a breakfast room and extensive carparking.

Ibis Budget Dandenong features 71 modern guest rooms, a breakfast room and on-site car parking. It sits on a 4,056sqm site fronting the Princes Highway, just 1km from Dandenong Town Centre.

Owing to their prime positions, guest offering and market reputation, both hotels have demonstrated strong historical trading performances with excellent growth over the past few years. Currently managed by Accor, they are available with vacant possession of management.

“Referred to as the “CBD of the South East”, Dandenong is a focus of the Victorian Government’s “South East Economic Corridor” which boasts a large residential population and primarily industrial focussed economy. It is also the tourism gateway to the region’s most popular leisure destinations such as Yarra Valley and the Dandenong ranges, said Nick MacFie, Vice President. He added, “The area has grown considerably in the past few years particularly and this sets the hotel up well for strong ongoing business and leisure demand.”

Likewise with Ibis Budget Fawkner, the property has witnessed considerable growth and development of its immediate surrounds. “Due to its excellent connectivity and central location, the property has aways traded well. However, with Melbourne’s northern suburbs booming in the past few years, there is clear opportunity for further growth,” said Nick MacFie.

Inline with a number of hotel and motel sales across metropolitan Melbourne in recent years, strong interest is expected from owner-operators, high net worth individuals and investment funds. In 2022, 54 hotel transactions occured nationally which is a significant increase on the historical average of 39 per annum. This was almost entirely due to an increased focus on metropolitan and regional assets in the mid-markets space as investors look to expand their portfolios and further drive strategies. Assets such as ibis Budget Dandenong and Fawkner both typify the types of opportunities that have been most sought in this period of heightened activity.

The properties are owned by Iris Capital who acquired it as part of the 17-asset AccorInvest Portfolio in 2021. Chief Executive Officer, Sam Arnaout, said “Our group has evolved considerably in the past couple of years headlined by major development projects in Newcastle and the Gold Coast. With no intentions to expand in Victoria, it made sense to capitalise on investor interest and re-direct the proceeds into the core focus and future of our business.”

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