The Adelphi Hotel at 187 Flinders Lane has sold for the second time in 18 months with Melbourne based hotel investor Mazen Tabet purchasing the property for a reported AU$19 million.
The 34-room hotel, in the “Paris End” of the CBD, joins Tabet’s local hotel portfolio which includes The Royce Hotel on St Kilda Road and The Lyall Hotel in South Yarra.
The hotel features a rooftop pool and events venue, cocktail bar and boardroom. Vacant possession of hotel management was offered as part of the sale which was negotiated by JLL Hotels and Hospitality’s Nick MacFie and Peter Harper and Savills Hotels Nick Lower and Benson Zhou.
The property was sold via administrators BRI Ferrier on behalf of Bond Finance after being placed on the market by previous owner, Virtical.
“Having sold the asset last year and received 13 offers, we knew the campaign would garner considerable interest and this was proven from our marketing campaign which saw more than 140 enquiries and a dozen inspections,” said JLL Senior Vice President – Investment Sales, Nick MacFie.
1834 Hotels will operate the hotel on behalf of Mazen Tabet in a deal negotiated by the selling agents.
“We’re incredibly excited to announce a valuable addition to our growing portfolio, the iconic Adelphi Hotel,” said1834 Hotels CEO Andrew Bullock.
“Continuing to expand into the Victorian market aligns with our strategic goals to further strengthen 1834’s presence and brand across Australia.
“We look forward to building on the hotel’s rich history and offering exceptional guest experiences.”
Savills Australia National Director Nick Lower, described the hotel as “a standout asset, both architecturally and in terms of location”.
“Its long-standing reputation as a boutique hotel of choice made it an incredibly attractive proposition for buyers,” he said.
“We’re thrilled to see it go to a new owner with such a strong track record in Melbourne’s hospitality sector.”
JLL Managing Director and Head of Investment Sales – Australasia, Peter Harper, said quality real estate continues to remain highly sought after in the hotels sector.
“The Melbourne hotel market has continued to show resilience and an innate ability to absorb new supply and this sale campaign is another fantastic example of an existing Melbourne owner believing in the market and expanding their holdings,” he said.