Boutique city fringe Royce Hotel tipped to fetch more than $60m
One of Melbourne’s most distinctive boutique hotels, the 100-room Royce Hotel on St Kilda Road on the city fringe, has been put up for sale with market expectations in excess of $60 million.
The hotel with its stunning 1920s art deco facade – a reminder of its origins as Melbourne’s first Rolls-Royce prestige car dealership – along with a four-level office building on a 2164-square-metre site are being offered for sale by its Melbourne private owners and operators, the Bursztyn family.
Both the hotel and the office building, which includes a permit for another 67 hotel rooms, are being offered with vacant possession.
They have been owned by the Bursztyn family since 2000. The family developed the hotel out of the old car showroom, retaining many of its heritage elements including its chandeliers, leadlight windows and ornate ceilings.
“A number of the hotel rooms used to be car service bays,” said Dan McVay, of McVay Real Estate Australia who is selling the hotel via an international expressions of interest campaign in conjunction with co-agent Sam McVay.
Dan McVay said the offer of the hotel as vacant possession gave it added appeal as it allowed a new owner operator to step in or an investor, who could then appoint their own operator.
He added that the potential to add another 67 rooms was an added enticement with a 100-room hotel “right on the edge” of the scale buyers sought. “Every extra room added will go straight to the bottom line,” he said.
Apart from the 100 guest rooms and suites, the five-star hotel boasts the award-winning dish Restaurant, the amberoom bar, conferencing and event facilities, a gymnasium and 25 undercover car spaces.
“The Royce Hotel has been privately managed as a standalone hotel since its opening in 2000 and now provides the opportunity to introduce branded hotel management to further improve both the sales distribution networks as well as creating cost efficiencies,” said Dan McVay.
