Hotel for Sale – Ibis Budget Dandenong
JLL Hotels & Hospitality’s Peter Harper and Nick MacFie, have been exclusively retained to market for sale the ibis Budget Dandenong, Victoria.
Ibis Budget Dandenong features 71 modern guest rooms, a breakfast room and on-site car parking. It sits on a 4,056sqm site fronting the Princes Highway, just 1km from Dandenong Town Centre.
The hotel has demonstrated strong historical trading performances with excellent growth over the past few years. Currently managed by Accor, it is available with vacant possession of management.
“Referred to as the “CBD of the South East”, Dandenong is a focus of the Victorian Government’s “South East Economic Corridor” which boasts a large residential population and primarily industrial focussed economy. It is also the tourism gateway to the region’s most popular leisure destinations such as Yarra Valley and the Dandenong ranges, said Nick MacFie, Vice President. He added, “The area has grown considerably in the past few years particularly and this sets the hotel up well for strong ongoing business and leisure demand.”
Inline with a number of hotel and motel sales across metropolitan Melbourne in recent years, strong interest is expected from owner-operators, high net worth individuals and investment funds. In 2022, 54 hotel transactions occurred nationally which is a significant increase on the historical average of 39 per annum. This was almost entirely due to an increased focus on metropolitan and regional assets in the mid-markets space as investors look to expand their portfolios and further drive strategies.
The ibis Budget Fawkner is also being offered for sale by JLL. Both assets are for sale via an Expressions of Interest campaign.
Two of Melbourne’s best performing metropolitan hotels, investors can acquire these assets either in-one-line or individually.
Assets such as ibis Budget Dandenong and Fawkner both typify the types of opportunities that have been most sought in this period of heightened activity.
The properties are owned by Iris Capital who acquired it as part of the 17-asset AccorInvest Portfolio in 2021. Chief Executive Officer, Sam Arnaout, said “Our group has evolved considerably in the past couple of years headlined by major development projects in Newcastle and the Gold Coast. With no intentions to expand in Victoria, it made sense to capitalise on investor interest and re-direct the proceeds into the core focus and future of our business.”