$200m Pullman on the Park on the market
Canadian real estate giant Brookfield is selling the 419-room Pullman on the Park, across the road from the Melbourne Cricket Ground for $200 million-plus, in the biggest hotel listing so far this year.
Previously called the Hilton on the Park, it has been managed by AccorHotels under its upmarket Pullman brand since January 2015.
Brookfield acquired the hotel as part of its takeover of ASX-listed Thakral Holdings in 2012.
With most of Sydney’s top hotels changing hands in the last few years, Melbourne has become a major hotel investment market for overseas investors, supported by a strong operating environment.
Melbourne hotels maintained a high average occupancy rate of 83 per cent last year, with an average daily room rate of $186, according to 2017 calendar-year figures compiled by researchers STR, ranking it the country’s second strongest-performing market behind Sydney.
Recent hotel sales in Melbourne include the 396-room Hilton South Wharf, picked up by Singapore’s UOL Group for $230 million in March last year (rebranded as the Pan Pacific) and the off-the-plan $220 million sale of the new W Hotel to be built at Collins Arch in February to Japan’s Daisho.
Golden Age’s Sheraton Melbourne was put up for sale last year asking about $135 million and was reportedly sold to Qatar Airways.
The Pullman on the Park is being marketed by JLL Hotels & Hospitality Groups’ Peter Harper and Craig Collins and McVay Real Estate’s Sam McVay and Dan McVay through an expressions of interest campaign closing on March 15.
It features 419 rooms and suites as well as a new lobby bar and restaurant, 18 conference and meeting rooms, business centre, gymnasium and swimming pool.
A major attraction for investors will be its prime location opposite the MCG sports precinct and close proximity to the Paris-end of the Melbourne CBD.
Whilst, currently managed by AccorHotels, it can also be acquired with vacant possession.
“Melbourne has been a major focus of global hotel investors over the past two years. The sale of this property follows several high-profile transactions including the Novotel Melbourne on Collins, Hilton Melbourne South Wharf and Sheraton Melbourne, and as such, presents an opportunity to acquire a landmark hotel in one of Asia Pacific’s most sought after investment markets,” said Mr Harper.
Sam McVay said Pullman Melbourne on the Park had had considerable capital expenditure over the past few years, including a complete refurbishment of its food and beverage facilities.
