Colliers International appointed to sell Novotel Melbourne Glen Waverley in landmark hotel opportunity
One of Melbourne’s best performing hotels, the Novotel Melbourne Glen Waverley, is set to be offered for sale in a landmark investment opportunity in one of Australia’s strongest accommodation markets.
Colliers International’s Gus Moors, Guy Wells and Neil Scanlan have been appointed to sell the hotel, which is described as the largest metropolitan hotel east of the Melbourne CBD.
“The Novotel Melbourne Glen Waverley is widely regarded as one of Melbourne’s strongest performing metropolitan hotels due to its ability to capitalise on the broad-based activity within the City of Monash, which is the second largest employment region in Melbourne, after the CBD,” Mr Moors said.
“This sale presents an opportunity to secure a strategic position in the tightly held Melbourne hotel market with an asset offering an enviable track record of strong, stable returns plus the further attraction of reversionary upside post expiry of the current lease."
The hotel comprises 200 upscale rooms, a spacious bar and restaurant, flexible meeting space, a well-equipped gym, indoor pool and underground secure parking for approximately 100 cars.
Mr Wells said the hotel was currently leased to Accor Asia Pacific under a triple-net lease expiring in July 2018.
“Thereafter, it offers vacant possession, allowing a new owner the flexibility to either re-engage Accor, appoint a new preferred operator or undertake owner operation,” he said. “The incumbent arrangement provides an incoming owner with stable income in the short term, and then flexibility to restructure the business beyond July 2018.
“The hotel’s location within Glen Waverley Activity Centre, a major commercial and retail precinct servicing the broader Monash precinct, is also a key attraction.
“As the only internationally branded, upscale hotel east of the CBD and St Kilda, the Novotel Melbourne Glen Waverley has a distinct advantage over its competitors from both a branding and product quality perspective.
“By leveraging the distribution and loyalty programs offered by its international branding, the hotel is able to attract higher yielding market segments."
Mr Wells said Melbourne was Australia’s fastest growing capital city, with a population of some 4.5 million.
“Recently ranked the World’s Most Liveable City for the sixth consecutive year, Melbourne is truly a global player in the tourism market,” he said. “Benefitting from a vibrant mix of business, culture, sport and entertainment events, Melbourne’s hotel market is one of the strongest in the country, with solid, consistent occupancy and rates that are growing materially."
Melbourne recorded a total of 71.4 million visitor nights during 2014/15, an increase of some 13.9%. According to Tourism Research Australia, visitor nights are anticipated to grow a further 8.1% across 2015/16. Melbourne witnessed 7.8 million domestic overnight visitors for the year ending December 2014 with an estimated 2 million international overnight visitors in the same period.
“The strength of the Melbourne hotel market creates opportunities for metropolitan hotels like Novotel Melbourne Glen Waverley, as they benefit from guest demand that is displaced from the CBD,” Mr Wells said.
The Novotel Melbourne Glen Waverley is for sale by Expressions of Interest closing October 18.