The tightly held Melbourne hotel market is set to see a major mid-scale hotel offering, with the Ibis Budget Melbourne CBD being marketed for sale this week.
Mr Callow said the move comes at a time when the Australian hotel market, and Melbourne in particular, is experiencing unprecedented investor interest in the face of limited quality investment opportunities.
The three-star hotel features 146 recently refurbished guest rooms, reception area, food and beverage outlet and other supporting facilities.
With a CBD location on Elizabeth Street, between Collins and Bourke Streets, the hotel is within immediate proximity to the historic Flinders Street Station and many of Melbourne’s major demand drivers for the corporate, conferencing and leisure market segments.
The Ibis Budget Melbourne CBD is operated by AccorHotels, Australia’s largest hotel management company, under a long-term agreement.
Due to its management structure, market positioning and efficient operation, the hotel has demonstrated a strong and growing trading performance with solid profit margins.
“The Ibis Budget is modern and ideally located in the heart of Melbourne’s CBD, close to transport hubs and sporting, retail and business centres,” Mr Callow said.
“The Ibis Budget represents an entry point 146-room hotel, which is hard to come by in the CBD due to escalating land values over the past five years.”
Mr Bunz added that hotel markets continue to see new supply nationally, with a main focus in the 4-5-star sector.
“Economy hotels have become less viable to develop in CBD locations, which makes existing opportunities even more valuable,” Mr Bunz said.
This hotel investment opportunity, located in one of Asia Pacific’s most sought-after hotel investment destinations, is being offered for sale via a public International Expression of Interest campaign, closing 4:00pm (AEST), Thursday, July 18, 2019.