Real estate giant Brookfield has listed its AccorHotels-run Pullman on the Park, with price expectations around the $200 million-mark.
The hotel was previously known as Hilton on the Park and has been managed by Accor since January 2015. It features 419 rooms and suites, new lobby bar and restaurant, business centre and 18 conference and meeting rooms.
The hotel enjoys a premium location opposite the MCG precinct and is just minutes from the Paris End of the CBD which is home to many of the city’s premium and A-grade office buildings.
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JLL Hotels & Hospitality Groups’ Peter Harper, who is involved in marketing the asset, said Melbourne has been a major focus of global hotel investors over the past two years.
“The sale of this property follows several high-profile transactions including the Novotel Melbourne on Collins, Hilton Melbourne South Wharf and Sheraton Melbourne, and as such, presents an opportunity to acquire a landmark hotel in one of Asia Pacific’s most sought after investment markets,” Harper said.
Melbourne’s hotel market is expected to experience a strong year in 2018, with overseas visitor numbers up eight per cent over the past 12 months and significant investment in the sector by hotel groups. Melbourne hotels maintained a high average occupancy rate of 83 per cent last year.
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Sales of key hotel assets and growing investor interest make up part of a hotel sector boom in Melbourne, with plans for more than 4500 rooms across the city. Over 18 major new hotels are in the planning stages or about to be built including the Marriott at Docklands, the 500 room Shangri La on the old Telstra site on Latrobe Street and the Mandarin Oriental at 600 Collins Street.