Kuwaiti hotelier lists $200m+ Melbourne portfolio

A Kuwaiti-backed hotel group has listed its portfolio for sale in the first major play in the hotel sector for 2021.

The three Melbourne hotels are up for grabs through Action Hotels Group, with price expectations thought to be north of $200 million.

Located in Melbourne’s South Wharf, the recently renovated, 347-room Novotel Melbourne marks the flagship property of the portfolio, with the 155-room Ibis Glen Waverley and 73-room Ibis Budget Melbourne Airport Hotel rounding up the offering.

The impressive package is listed for sale via an expressions of interest campaign closing on Tuesday, March 9 and is being headed up by CBRE’s Hotels team following last year’s $180 million portfolio sale of 17 Ibis-branded hotels to Iris Capital.

CBRE Hotels’ managing director Michael Simpson says the properties are sure to capture the market due to their ranging accommodation facilities.

“The portfolio provides a spread of accommodation types to suit investor demand, with 4.5, 3.5 and budget 2.0 star corporate and leisure hotels in CBD, metropolitan and airport locations,” Michael explains.

Michael’s CBRE colleague Wayne Bunz adds Australia’s response to the COVID-19 pandemic has led to increased investor interest which will only be fuelled further by the much-anticipated reopening of borders.

“Australia is currently viewed as a safe haven for international investors, underpinned by how well we’ve handled the COVID-19 pandemic,” he says.

Australia is expected to be a key beneficiary of inbound capital once borders reopen, with investors seeking to capitalise on a market rebound and Melbourne regaining its position as the country’s events capital.

Wayne Bunz – CBRE Hotels

Action Group director Andrew Nehme says the group has decided the time is right to cash in on their portfolio following significant off-market interest.

“For some time, we have been fielding a number of unsolicited offers for the portfolio both direct and from intermediaries,” he says.

“Given the strength and depth of capital in the market and the impending tourism recovery, we felt that it was a good time to approach the market in a coordinated way.”

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