Melbourne’s most iconic and highly valued entertainment venues, Hotel Esplanade for sale by Public Tender through Gorman Allard Shelton’s Joseph Walton.

Mr Walton said the landmark hotel at 11 The Esplanade, St Kilda is expected to sell for around $70 million.

Mr Walton said, “we’re anticipating strong interest in the offering from major domestic, interstate and international buyers, driven not only by the property’s rich history and iconic status but more particularly, its 20-year lease to Australian Venue Co.”

The Australian Venue Co is a substantial hospitality operator with a portfolio of 211 venues across Australia and New Zealand. The tenant pays a net passing income of $3.15 million on the property plus outgoings and GST. Mr Walton commented that the property is truly a once in a lifetime investment opportunity, given its particularly strong lease tenure to a blue-chip business.

The impressive five-level freehold is located directly opposite St Kilda’s popular foreshore precinct and consists of a substantial heritage building constructed in 1878 with a net lettable area of 3,200 square metres.

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Hotel Esplanade has undergone recent refurbishment throughout reopening in 2018 and becoming one of Melbourne’s hottest hospitality establishments. Accommodation includes 12 bars, two restaurants, cocktail rooms, function rooms, the Gershwin room with a live stage and terrace with retractable roof.

A grand dame of the seaside, the Hotel Esplanade was originally built in 1878 as a palatial, oceanfront resort for Melbourne’s wealthy elite. Fuelled by Victoria’s gold rush era, it was a time of prosperity for Melbourne. A rail connection to St Kilda had opened in 1857 and grand mansions dotted St Kilda’s landscape.

During this golden age, Melbourne’s most prominent architects, Smith & Johnson, developed the site of the New Bath Hotel into the Hotel Esplanade. Italianate architecture, inspired by Italian palazzo style defined the design. Close to the city and beside the sea, St Kilda was a luxury playground and holiday retreat for the rich and influential. The hotel attracted its fair share of notable visitors including American writer Mark Twain and French actress, Sarah Bernhardt.

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By the late 1960’s a new bohemian personality had emerged in St Kilda. Col Jackson took over the hotel and grew its ascent as a beacon for Melbourne’s live music scene. As 1970’s disco lit up Melbourne, the grand dining room was transformed with a glitzy, flashing dance floor and the Esplanade Hotel’s famed Gershwin Room was born.

It wasn’t until the late 70’s to 90’s however, that the Gershwin Room became a prolific stage for live performances and propelled the hotel into music history. Live music, on up to three stages, grew to a near nightly occurrence, laying the foundation for The Espy’s reputation as the longest, continuously running live music venue in Australia. Playing a gig at The Espy was a rite of passage for emerging musicians and comedians while its status as a monumental music venue attracted international acts.

Mr Walton said St Kilda is undergoing a revitalisation which is seeing it become home to a number of new developments and popular restaurants and entertainment venues.

“One project in particular which is driving this renewal is Gurner’s $550 million redevelopment of the Novotel Hotel into the Saint Moritz luxury residential apartments, which overlook St Kilda’s beach.”

Mr Andy Mullins of Sandhill Road comments “We feel so privileged to have been the team that breathed fresh life into the lungs of this stunning, historic establishment. It’s so much more than a pub”.

"We feel very proud to have done our job as one of The Espy’s few custodians. We are now genuinely excited for the next freehold owners as Paul Waterson and the AVC team take over and write the next chapter in its storied history.”

The Public Tender process is due to conclude on the18 th of November 2022.

To request a copy of the Information Memorandum please contact the marketing agent Gorman Allard Shelton’s Mr Joseph Walton via the contact details below.

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