Melbourne’s Zagame Family Lists Hotel Portfolio Worth $300m

Melbourne’s Zagame family has listed its hotel portfolio of six properties located in Melbourne and Vanuatu with price expectations of more than $300 million.

The portfolio is being offered on an individual basis, in any combination or in-one-line and is expected to generate significant interest locally and internationally.

CBRE Australia national director Mark Wizel has been appointed with Cropley Commercial to manage the marketing campaign.

Wizel said the Zagame family had been industry innovators establishing one of Australia’s most successful and respected operations.

“Victor Zagame was an innovator and leader of the Australian hotel and hospitality industry with a product that immediately captured a loyal clientele at The Albion Charles Hotel more than 46 years ago for what became the Zagame Corporation – one of the Australian hotel and service industry’s most respected and well-known businesses,” Wizel said.

“The successful purchaser or purchasers will have the significant advantage of buying into that success story.”

Victor Zagame passed away late last year aged 77.

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The gaming-centric portfolio comprises five Victorian freehold going-concern hotels, generating combined revenues in excess of $94 million, with current ownership of 490 gaming machine entitlements representing an opportunity to enter the lucrative Victorian gaming sector with one of the largest gaming machine holdings and market share.

The hotels are among Victoria’s best performing gaming hotels including Zagame’s Reservoir Hotel, Zagame’s Caulfield Club, Zagame’s Boronia Hotel, Zagame’s Ballarat Club, and Victoria’s number four ranked gaming venue, Zagame’s Berwick Springs Hotel.

Included in the sale is the 4-star Grand Hotel & Casino in Vanuatu, offering a casino, VIP room and 74 luxury accommodation rooms. Situated 10km from the airport and Port Vila’s business and entertainment precinct, the eight-level waterfront hotel offers a variety of income streams generated from its 16 table games, 136 gaming machines, accommodation and food and beverage facilities.

Zagame Corporation director, Victor Zagame Jnr, said the incoming purchaser would be buying a proven business model that had grown successfully over 50 years.

“Our venues are exceptionally well presented, our staff are leaders in the industry, and our product is second to none,” Zagame said.

“These successful businesses are well placed to continue to deliver substantial growth.”

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Cropley Commercial’s George Iliopulos, said the portfolio comprised the single largest gaming portfolio to ever hit the market in Victoria, a portfolio poised for strong trading growth.

“The State Government’s decision to extend gaming licenses until 2042 has provided operators with certainty and has made Victoria’s 13,750 pub gaming entitlements that much more sought after and valuable in Australia’s fastest growing state,” Iliopulos said.

International Expressions of Interest close on Thursday, 21 June.