Golden Age selling $130m Sheraton Melbourne
1 Feb 2017
Property developer Jeff Xu is cashing in and selling the five-star Sheraton Melbourne Hotel his Golden Age Group completed three years ago on Little Collins Street.
The 174-room hotel opened in early 2014 and marked the return of the Sheraton brand to Melbourne after an absence of nearly a decade. Based on other recent hotel transactions, market observers anticipated a price of between $130 million and $140 million.
The Sheraton Melbourne formed part of a 32-level mixed-used development by Golden Age Group. The developer recently purchased Grocon’s neighbouring 85 Spring Street apartment project for $75 million while construction has started on another Golden Age Melbourne high-rise project, Collins House on Collins Street.
Managed by Marriott International, the hotel’s amenities include two restaurants, a rooftop bar, function space, day spa, gym and indoor heated swimming pool.
“We’re very pleased to be offering this exciting opportunity to purchase one of Melbourne’s most prestigious and contemporary hotels,” Mr Xu said.
The global sales campaign for the hotel is being steered by Mark Durran of JLL Hotels and Hospitality alongside Mark Wizel and Lewis Tong of CBRE.
Mr Durran said the key attributes of the hotel were that it was virtually brand new and that it was performing very well.
The listing of the Sheraton Melbourne comes amid strong operating conditions in Melbourne with occupancy rates well above 80 per cent across the city.
Asian investors have been particularly active in the Melbourne market of late with listed Singaporean developer Sing Holdings paying $107 million for the 291-room Travelodge Docklands and Singapore-listed Frasers Hospitality Trust buying the Novotel Melbourne on Collins for $237 million.