By Vanessa Cavasinni, editor Australian Hotelier
The freehold of the Beach Hotel and attached Foodworks Supermarket has sold for an alleged $18m to mainland Chinese investors.
Scott Callow, senior director of CBRE Hotels who handled the sale, would not confirm the sale price.
Situated across the road from the beach in Albert Park, and less than two kilometres from St Kilda, the hotel enjoys a well-populated spot with plenty of foot traffic. Beach Hotel sits on a 1713m2 corner block, with three street frontages. Besides the attached supermarket, it also houses 34 EGMs and is a popular venue for weddings and other events, due its outlook over Port Phillip Bay.
The hotel is currently leased to McKinnon Hotels under a seven-year lease, and the supermarket is leased to Foodworks under a 10-year lease.
With unobstructed bay views, a tram stop directly outside the site, median house prices in the four surrounding suburbs at $1.6m and above, and the CBD only four kilometres away, there is speculation that the new owners could potentially transform the hotel into residential apartments in the future, with a five-level development being built one block down from the site, as stated by Callow.
“Investor and developer interest was strong from both local and overseas buyers who recognised the prime location, security of income and potential to look to develop into the future.”