Saint Hotel in St Kilda looks for a buyer as suburb continues to shed its old image

The sale is being conducted by Colliers International, which is talking up the improved prospects of the St Kilda area following a series of redevelopments, new hospitality offerings, the intervention of the TV show The Block and the government’s new Pride Centre.

“Broadly what you’re seeing is an evolution of the precinct from what was back in the late ’90s and early 2000s an eclectic arts hub to then having its run of issues through the early-to-mid 2000s,” Colliers International’s Guy Wells said. “Now with The Block and Pride Centre, people are seeing what Fitzroy Street can be, and it’s generally only up from here.”

The sale of the Saint Hotel includes a total land area of 503 square metres and floor area of 1130 square metres. The building has an approximate net income of $486,725 a year, while the agents say that a planned digital signboard to be installed on the rooftop could bring in an additional $80,000 a year.

A large-scale refurbishment and redevelopment was conducted on the hotel in 2014, with the venue reopening the following year.

Mr Wells said extensive work was also completed on the building.

“As a punter you see just the public area, but there’s now a full basement with back of house areas,” he said. “It was a complete rebuild of the whole premises. It’s still a very new hotel product in the market.”

Mr Wells declined to reveal the vendor or the price guide for the sale.

The hotel was refurbished in 2014. Photo: Supplied

“The owner bought it around 2010 and they undertook a lot of the renovations, and then leased the property out in April last year,” he said. “They’re now looking to focus on other things – they’ve seen that area start to evolve and thought that now’s the time while there’s still upswing for the next person to move in on it.”

The building now boasts entertainment venues and a pub across three levels.

“The property provides a fully equipped, state-of-the-art entertainment venue and pub constructed over three levels,” Colliers International’s Ted Dwyer said. “It offers a secure investment with a valuable late-night liquor licence until 3am, and a 430-person capacity.”

Mr Wells said there was also potential for development of the site to include residential or accommodation, with the current lease allowing for extra levels to be added during the tenure.

“Uniquely, if you were to buy this you could potentially add a floor or two on top, with further development upside while still getting the rental on the pub,” Wells said.

There have been a number of significant redevelopments and sales in the St Kilda area recently.

The nearby Gatwick Hotel was controversially sold and is now the site of the current season of The Block, while the Oslo Hotel on Gray Street is reported to be the location for next year’s season.

It was also recently announced that a joint venture between the Barana Group, Alceon and Tim Gurner will see the Novotel Hotel on the Esplanade demolished to make way for 130 luxury apartments offering six-star service.

The Esplanade Hotel is set to reopen later this year for the first time in more than three years, with a new range of offerings including a Cantonese restaurant and high-end cocktail bar.

The state and local governments have also provided about $28 million for the new Pride Centre of Fitzroy Street, across the road from the Gatwick, to provide health, advisory and support services for the LGBTQI+ community.

The Saint Hotel will be sold through an expressions of interest process closing on 23 August. Mr Wells said there had already been interest from hospitality investors.

“People are seeing St Kilda starting to evolve and are wanting to grab a piece of the action,” he said. “There’s a bit of vision to say that this is a great asset now, but what could it be in five to 10 years?”