- Currently owned by Singaporean company Well Smart Investment Holdings
- Hotel is home to Novotel and Ibis brands in Melbourne Central
- The property is located on a freehold land parcel
Cue the numerical cliches in a new offering hitting the Melbourne real estate market: a dual-branded, high rise hotel.
While it seems good things come in twos, three is the magic number: the property is being offered on a sale-and-lease-back basis, with the benefit of a triple net lease to the vendor for three years.
The Novotel and Ibis Melbourne Central tower is expected to fetch within the vicinity of $180 million, the property itself within the vicinity of Federation Square, Bourke Street Mall, Melbourne Cricket Ground and Marvel Stadium.
Singaporean group Well Smart Investment Holdings moved to sell the property as the latest step in an asset recycling programme in Australia and New Zealand.
The property comprises 472 rooms, with 259 in the lower levels belonging to Ibis, and the remaining 213 to Novotel.
The sale continues Well Smart’s strategy to recycle capital following its recent divestment of the ibis Budget Melbourne CBD and the Mantra Terrace Hotel in Brisbane.
A Well Smart spokesperson said the group was looking to utilise the sale proceeds for a Funnel Bay hotel and residential development at Airlie Beach and multiple planned projects at Queenstown in New Zealand.
“The Melbourne hotel market has traditionally benefited from robust corporate visitation and tourist demand and boasts Australia’s best cultural and sports events calendar. With domestic and international borders now open, we expect Melbourne to have a rapid recovery,” said CBRE Hotels’ National Director Wayne Bunz.
The Novotel Ibis Melbourne Central offering is also unique, said CBRE Hotels’ Senior Director Scott Callow:
“Unlike many of Melbourne’s recently developed hotels, which are mostly strata-titled, mixed-use residential developments, the Novotel & ibis Melbourne Central is located on a freehold land parcel, which will ensure the hotel is highly sought after by a myriad of different investment groups.”
The property is being offered for sale via an EOI campaign closing 13 April 2022, unless sold prior.