Novotel hotel in Melbourne comes to the market

One of Melbourne’s best performing hotels, the Novotel Melbourne Glen Waverley, is set to be offered for sale in one of Australia’s strongest accommodation markets. 

The hotel comprises 200 upscale rooms, a bar and restaurant, meeting space, gym, indoor pool and parking for nearly 100 cars. It is currently leased to Accor Asia Pacific under a triple net lease expiring in July 2018.

It will be sold through an expressions of interest closing October 18. Colliers International’s Gus Moors, Guy Wells and Neil Scanlan have been appointed to sell the hotel.

“The Novotel Melbourne Glen Waverley is widely regarded as one of Melbourne’s strongest performing metropolitan hotels due to its ability to capitalise on the broad-based activity within the City of Monash, which is the second largest employment region in Melbourne, after the CBD,” Moors said. 

“This sale presents an opportunity to secure a strategic position in the tightly held Melbourne hotel market with an asset offering an enviable track record of strong, stable returns plus the attraction of reversionary upside post expiry of the current lease.”

Wells added that “as the only internationally branded, upscale hotel east of the CBD and St Kilda," the Novotel hotel has an edge over its competitors.  

“Melbourne’s hotel market is one of the strongest in the country, with solid, consistent occupancy and rates that are growing materially.”

The capital city recorded 71.4 million visitor nights during 2014/15, an increase of 13.9 percent. According to Tourism Research Australia, visitor nights are anticipated to grow a further 8.1 percent across 2015/16. 

“The strength of the Melbourne hotel market creates opportunities for metropolitan hotels like Novotel Melbourne Glen Waverley, as they benefit from guest demand that is displaced from the CBD,” Wells said.