A family-run hotel on Melbourne’s famous Lygon Street is to be transformed into a boutique property after changing hands for north of $17 million.
The unnamed buyer, who was described as local, picked up the Lygon Lodge at Carlton from the family who had owned and operated it for 25 years.
The hotel comprises 60 rooms and two licensed restaurants across 1019sq m with 2m of frontage on Lygon Street.
The property at 220-228 Lygon Street is 500m north of Melbourne Central shopping centre. The new owner paid $17.3 million in the sale handled by Savills.
Savills director of sales Benson Zhou said the 50-year history of the hotel as well as its location were the main selling points for the buyer.
“Given its location in a favourable Commercial 1 zone, the new owner of this property had a wealth of options available to them (including) changing the floor plates, refurbishing throughout or adding further to the existing structure,” Zhou said.
According to recent reports, hotel occupancy in Victoria has ramped up, continuing its strong post-pandemic recovery.
Savills’ Nick Lower said there had been a significant amount of interest from buyers locally and internationally in the hotel.
“With supply of accommodation across Victoria relatively low, particularly for existing hotel assets, the demand to purchase is at record highs with investors understanding the opportunity hotel assets offer to hedge against rising interest rates and inflationary pressure,” Lower said.
The deal comes a year after an offshore investor acquired the nearby John Curtin Hotel for $5.08 million.
