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Dubai-based Action Hotels Group has listed the 155-room Ibis Glen Waverley, taking advantage of strong investor interest in Melbourne’s hotel market.
The group developed the suburban hotel located 23 kilometres south east of Melbourne's CBD in 2007 in conjunction with AccorHotels.
The 4,400 square metre site, located on the corner of Springvale Road and Kingsway Glen Waverley, is directly opposite Vicinity’s The Glen shopping centre.
The 6-storey hotel includes a cafe, restaurant, bar, conference and function facilities and a large business centre.
CBRE Hotels agents’ Wayne Bunz and Scott Callow will steer the sale process for the 3.5-star hotel.
Related: Accor Expands in Asia Pacific with $1.2bn Mantra Group Acquisition
Listing agents have highlighted that the property coming to market coincided with a recent hotel supply cycle in Melbourne.
“The supply cycle follows a period of constrained demand in a market which enjoys a wide range of demand drivers, including conferences and events throughout the year, driving corporate and leisure demand on a seven day a week basis,” Bunz said.
“Melbourne is home to the AFL Grand Final, Melbourne Cup, the Australian Open, the Grand Prix all which continues to see Melbourne perform as the leading event capital of Australia.”
“We consider it reasonable to expect that market demand will exceed new supply as has typically been the case in Melbourne.”
The hotel, which is operated by Accor under the Ibis Budget brand, benefits from the company’s market leading sales, marketing and distribution network, achieving a high profit margin of 40 per cent since opening in 2007.
Action Hotels reported revenue was up over 2018, increasing to $32.7 million from $28.1 million recorded in 2017, driven by a spate of new hotel rooms.
