- The deal represents the largest of its kind for over half a decade
- Previously held by Well Smart Investment
- Now owned by Legend Land Melbourne
Melbourne’s largest hotel deal in over half a decade has been struck, as the Novotel and ibis Melbourne Central changes hands from Singaporean group, Well Smart Investment Holdings, to Worldwide Hotels Group subsidiary, Legend Land Melbourne Pty Ltd.
CBRE Hotels brokered the $170 million sale on behalf of Well Smart Investment Holdings. The sale is part of the company’s capital recycling strategy, which has already seen them acquire Lindeman Island in Queensland; the island was previously owned by China-based White Horse.
The hotel
The dual-branded, high-rise hotel comprises the 259 room ibis hotel and 213 room Novotel.
Located at 399 Little Lonsdale Street, the property is within striking distance of some of Melbourne’s most iconic and visited destinations, including Federation Square, Bourke Street Mall, Melbourne Cricket Ground and Marvel Stadium.
The property was listed for sale in early 2022, with the deal now representing the largest hotel transaction in Melbourne in over six years, according to CBRE.
“We have strong confidence in the Melbourne hotel market and its rapid recovery, given it is Australia’s most populated city and the nation’s events capital, which has consistently demonstrated its ability to absorb new supply. The market benefits from robust corporate visitation and tourist demand and boasts the country’s best cultural and sports events calendar,” said CBRE Hotels’ National Director Wayne Bunz.
“The acquisition of the Novotel & ibis Melbourne Central is the latest 2023 Australian deal brokered by CBRE Hotels, following Australia’s record single transaction of the Waldorf Astoria Sydney hotel development at 1 Circular Quay and the Sofitel Brisbane Central Hotel.”
“The Melbourne transaction followed a strong recovery in the city’s hotel market, with Melbourne recording the country’s third highest RevPar growth rate in the year to April 2023, growing by 54% compared to the same period through 2022”.
“Importantly, this recovery highlights the strong absorption of the ten hotels that have come online since the start of 2022 in Melbourne, largely supported by a continued recovery in domestic and international tourism”.
“While the city’s elevated, high-quality supply pipeline dampened investment levels over 2021 and 2022, Melbourne is now showing its ability to absorb this new room supply, which is expected to underpin growing investor interest in the market as the year progresses.”
$388M deal struck in Singapore
Worldwide Hotels Group also announced its agreement to acquire the PARKROYAL on Kitchener Road in Singapore, for a total consideration of US$388 million (A$580.5 million).
The deal represents the largest-ever single-asset Singapore hotel transaction.
