Ultra-wealthy families sell Melbourne hotel amid legal tussle
The high-powered consortium behind the Hotel Continental development in Sorrento on the Mornington Peninsula has offloaded a near new hotel in West Melbourne, amid a legal tussle with its former operator, TFE Hotels.
The Australian Financial Review understands the consortium comprising developer Trenerry Property, Victor Smorgon Group and the Kanat Family offloaded the 99-room former Adina apartment hotel that forms part of its completed $340 million West End development for about $35 million, having hoped to sell it for as much as $45 million.
The buyer was a Tasmanian-based investor who plans to continue to operate it as a hotel.
“Trenerry can confirm that the property has sold and also that they have commenced Supreme Court proceedings against TFE for wrongful termination of the lease, but they are unable to provide any further details at this time,” said a spokeswoman for the developer.
A spokeswoman for TFE Hotels said she was “unable to comment at this time”. A note on the TFE Hotels website confirmed the hotel had closed.
“From time to time as we grow our portfolio, hotels will also leave our family, and it is with much sadness that we write to let you that Adina West Melbourne has ceased to be part of the TFE family as at 12 February 2022,” the note said.
TFE Hotels is a joint venture between the Vidor family’s Toga Hotels and Singaporean operator Far East Hospitality,
The operator has been on a major expansion drive, locally and overseas, revealing plans in May to open its first Vibe and Adina hotels in Singapore this year.
The Adina West Melbourne was one of almost 60 hotels operated in Australia by TFE Hotels.
It opened its doors only in December 2020, following the completion of Trenerry’s mixed-use West End project which includes 377 apartments on almost a hectare bounded by Rosslyn, Dudley and Adderley streets.
The sale of the West Melbourne building was brokered by Paul Jones of Jones Real Estate alongside Anthony Kirwan of Colliers International, who declined to comment.
Its developer Trenerry is putting the finishing touches on its $120 million redevelopment of the Continental Hotel in Sorrento.
The project will include a 108-room InterContinental Hotel operated by IHG Hotels & Resorts as well a wellness centre. A large food and beverage offering operated by The Scott Pickett Group and the Collective Heads pub group has already opened.
