Singaporean group Well Smart Investment Holdings has sold ibis Budget Melbourne CBD to Capit.el Group led by Eduard Litver.
CBRE Hotels agents Wayne Bunz and Scott Callow negotiated the sale.
National Director Wayne Bunz noted, “Melbourne has experienced some challenging economic times particularly for the hotel market and this brings about opportunities for astute buyers looking to enter the market.”
“While new supply is an ongoing consideration for CBD hotel markets nationally, the main focus is in the 4.5-star sector, with strong ongoing demand expected for budget accommodation,” Mr Bunz added.
Situated on Elizabeth Street, the 3.0-star hotel features 146 recently refurbished guest rooms, 24-hour reception, a food and beverage outlet and other supporting facilities.
The modern property is operated by Accor Hotels, Australia’s largest hotel management company, under a long-term agreement. The hotel was offered as a freehold strata above four retail shops fronting both Elizabeth Street and Equitable Place to the rear.
CBRE Hotels Senior Director Scott Callow said, “Melbourne’s budget accommodation industry provides the ideal steppingstone for overseas travellers and seasonal workers looking for a mid-term home. We have seen several hotels in the budget market close over the past 18 months which will mean that those remaining in the market will benefit greatly from a resurgence of demand with interstate and international borders open.”