Skip Ribbon Commands
Skip to main content

News release

Melbourne

Novotel Melbourne on Collins sells for AUD 237 million to Frasers Hospitality Trust

Transaction represents continued intense competition for Australian trophy hotel assets


​​Landmark Melbourne hotel, the 380-room Novotel Melbourne on Collins, has been sold to Frasers Hospitality Trust for AUD 237 million, representing one of largest ever hotel transactions to occur in Melbourne. JLL's Hotels & Hospitality Group advised the seller on the sale.

Craig Collins, CEO Australasia, JLL's Hotels & Hospitality Group, who brokered the transaction said, "We are currently experiencing significant demand for trophy status hotels across Australia's major markets. There has been a noticeable change of focus with global hotel investors who typically focus on international gateways such as New York, London, Paris and Hong Kong, now also targeting Australia's key markets. Over the past couple of years Australia has become even more attractive because of the excellent growth in international tourism, strong domestic market and the fundamental transparency and safety of the real estate market."

Mr Collins continued, "We were always confident that the Novotel Melbourne on Collins would be strongly targeted by investors because it enjoys an absolute prime location in the heart of Melbourne, sits above a new luxury retail centre, and has achieved strong and consistent trading performance over a long period of time."

The transaction of the Novotel Melbourne on Collins, the first trophy asset sale in that market for some time, follows around AUD 2 billion of Sydney deals completed by JLL's Hotels & Hospitality Group including most recently The Westin Sydney, Hilton Sydney & Sheraton on the Park.

Interest for Novotel Melbourne on Collins was received from a range of domestic and international investors during the Expressions of Interest campaign which garnered multiple highly competitive bids.

Mr Collins added, "We are in continuous contact with a substantial pool of investors who are seeking to either enter the Australian hotel market or further invest. With the current scarcity of opportunities it is difficult for even experienced, well-capitalised groups to secure properties considering just how highly sought Australian hotel assets are at present amongst the international investment community."

"We expect to see further investment in Melbourne and other parts of Australia after a long period of Sydney being in the spotlight. Melbourne especially is well known internationally as a global cultural and events icon and is very well positioned for further long term growth."

"Right now is a very exciting time for tourism and hotel investment across the country." concluded Mr Collins.