Yeh Hotel Group Purchases First Melbourne Guesthouse Off-Market
Sydney based Yeh Hotel Group has made its first Melbourne acquisition – an interest in the budget Ibis Little Bourke Street, previously known as Ibis Accor Hotel and before that, All Seasons Paragon.
The 10-level complex has been re-branded, again, to Melbourne Hotel CBD.
The off-market deal includes a conference room, restaurant, bar, meeting facilities and 56 guest suites.
Another 65 hotel rooms which form part of the Melbourne Hotel CBD are leased from third-party owners.
The complex, 594-600 Little Bourke Street, also contains 40 strata offices.
In other hospitality news today, International Hotel Group sold its Melbourne Airport Holiday Inn to developer and investor Pelligra Group on a manage-back basis.
As part of this agreement, Pelligra will undertake a major renovation of the facility.
IHC and Pelligra co-control other Melbourne hospitality assets under construction in Richmond and Werribee.
MELBOURNE HOTEL CBD NEW NAME FOR 600 LITTLE BOURKE ST
The Little Bourke Street complex, on a 467 sqm block, was developed about 22 years ago by a consortium including hotel investor, philanthropist and Erdigroup director, Les Erdi, who died in January, 2013.
Jeffrey Pinch – Erdigroup’s chairman, with Eric Appel and Michael Naphtali – a trio which last year reportedly banked $15.12 million selling a supermarket in Melbourne’s Scoresby – were other Ibis vendors.
JLL’s Peter Harper and Nick MacFie were the brokers.
While no sale price has yet been disclosed, assuming each suite is worth $300,000, the deal for the hotel rooms alone could be worth in the order of about $19.5 million.
Including the hospitality spaces, the price YHG is outlaying could be closer to about $25 million.
“In addition to being available with vacant possession of management, the property was considered to be an attractive entry point for the tightly held Melbourne market and have a strong location in the heart of the Western Core and Flagstaff precincts of the CBD, adjacent to Southern Cross Station,” the brokers said.
By Marc Pallisco