As reported in The Hotel Conversation on March 6th, Minor Hotels has acquired the management rights of two 4.5-star Geelong hotels, R Hotel Geelong and Vue Apartments & Day Spa, from Collective Hotel Management, for a sum well in excess of $10 million. The properties will be operated under Minor’s serviced apartment brand, Oaks.

Transacted by ResortBrokers’ Directors Alex Cook and Tim Crooks, the off-market deal saw Minor purchase the management rights to both Geelong properties, totalling 187 apartments, as well as associated real estate including a cafe, office, reception and other operational areas.

Minor’s purchase is the international chain’s second management rights acquisition in Victoria through ResortBrokers in recent months.

In December, Minor settled its purchase of the 658-unit predominantly residential ALT & Sienna apartment complex in the inner-city Melbourne suburb of Travancore. Minor intends to grow the short-term / serviced apartment offering in those buildings.

The transaction for the Geelong properties was settled earlier this month. R Hotel Geelong and Vue Apartments are located on Bellerine Street in Geelong’s CBD and sit across Corio Street from one another.

R Hotel Geelong became the city’s first upscale 4.5-star apartment complex when it opened in 2020. Construction of the 127-apartment hotel was part of a redevelopment that saw eight new storeys added to a restored Ritz hotel, a heritage-listed Geelong icon that was once one of the city’s grandest hotels in its mid-19th century heyday.

Vue Apartments, consisting of 60 apartments, includes Vue Day Spa, a beauty and wellness retreat.

The redevelopment and restoration were undertaken by Melbourne developer Integrated Development Solutions working with Geelong-based architect Mark Gratwick.

“From an acquisition perspective, Minor looks for high quality assets, of significant scale that are able to generate compelling returns on investment,” says Alex Cook.

“Minor is a highly sophisticated chain that is open to acquisitions in regional locations. Indeed, regional accommodation properties generally offer better returns than state capitals, and are often capable of dominating their local markets. Furthermore, they allow national operators like Oaks to expand their footprint and offer more locations to their extensive corporate clientele.”

“With the significant growth seen in Geelong in recent years, and future earmarked development, it is a much sought-after location on several operator’s radars. It’s the largest regional city in Victoria and has experienced the third highest growth rate among major regional economies in the past five years.”

“In our opinion, R Hotel Geelong and Vue Apartments are the best quality accommodation offerings in town and give us the foothold in Geelong we were looking for,” says Craig Hooley, CEO, Minor Hotels.

“Both have their own distinct character and appeal to leisure and business travellers for different reasons. R Hotel has the history. Vue offers modernity and a luxury spa. Their Bellerine Street location takes full advantage of their proximity to Eastern Beach and Austin Park with great views.”

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