Colliers International’s Hotels team in Melbourne has sold the leasehold interest in St Kilda’s Hotel Barkly to two tenants after strong interest from several individual buyers.
The well-known hotel and backpackers was offered to market in mid-2016 as a leasehold offering and received strong interest from pub operators and backpacker tenants individually.
“After originally looking to sell the leasehold interest to one buyer, the decision was reached to sell to individual tenants to allow each to focus on their preferred business model,” Colliers International’s Guy Wells said.
“Given the interrelated nature of each business, significant negotiations were required between landlord, vendor, and the two incoming operators.
“We were able to source a pub operator to purchase the basement, ground and rooftop levels. This purchaser will operate the venue as a traditional ground floor bar and re-invigorate the function capacity on the impressive rooftop level.
“A Sydney-based backpacker tenant has acquired the accommodation component, as they look to increase their exposure into the Melbourne marketplace.
“Hotel Barkly – or St Kilda Beach House as the accommodation has become known – is the fourth venue for this Sydney-based operator, bringing their total count to close to 1,000 backpacker beds."
Mr Wells said a delay in the adoption of the much-discussed ‘Backpacker Tax’ by the Federal Government provided a level of comfort to the incoming purchaser.
“We have seen increased appetite for backpacker and short-stay accommodation offerings over recent months as Melbourne continues to go from strength to strength in occupancy rates and visitation statistics,” he said.